A regular deposit of $120 is made at the beginning of each year for 20 years. Simple interest is calculated at a rate of i per year for 22 years. At the end of the 22-year period, the total amount in the account is $9600. Suppose that interest at the same rate i compounded annually had been paid instead. How much interest would have been in the account at the end of the 22 years?

A regular deposit of $120 is made at the beginning of each year for 20 years. Simple interest is calculated at a rate of i per year for 22 years. At the end of the 22-year period, the total amount in the account is $9600. Suppose that interest at the same rate i compounded annually had been paid instead. How much interest would have been in the account at the end of the 22 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 26P

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