Natalia makes a deposit of $2,000 into a savings account at the end of the 1st year and another one in the same amount at the end of the 3rd year. Manuel makes a deposit of $2,000 at the end of the 2nd year and another one in the same amount at the end of the 4th year. The effective annual interest rate on both investments is 10%. Determine by how much the accumulated amount in Natalia's account exceeds the accumulated amount in Manuel's account at the end of 5 years right after interests have been applied.
Natalia makes a deposit of $2,000 into a savings account at the end of the 1st year and another one in the same amount at the end of the 3rd year. Manuel makes a deposit of $2,000 at the end of the 2nd year and another one in the same amount at the end of the 4th year. The effective annual interest rate on both investments is 10%. Determine by how much the accumulated amount in Natalia's account exceeds the accumulated amount in Manuel's account at the end of 5 years right after interests have been applied.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 15E
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