An account was opened on January 1, 1999 with a deposit of $12,000. Additional deposits of $100 each were made to the account on the last day of each month for 5 years, with the first of those deposits occurring on January 31, 1999. Withdrawals from the fund of $1000 each on the first day of each quarter are scheduled to start on January 1, 2006. No other deposits or withdrawals are made. The interest rate is at a nominal annual rate of 8% compounded monthly. Find the balance in the fund on December 31, 2010.
An account was opened on January 1, 1999 with a deposit of $12,000. Additional deposits of $100 each were made to the account on the last day of each month for 5 years, with the first of those deposits occurring on January 31, 1999. Withdrawals from the fund of $1000 each on the first day of each quarter are scheduled to start on January 1, 2006. No other deposits or withdrawals are made. The interest rate is at a nominal annual rate of 8% compounded monthly. Find the balance in the fund on December 31, 2010.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An account was opened on January 1, 1999 with a deposit of $12,000.
Additional deposits of $100 each were made to the account on the last day of each month for 5 years, with the first of those deposits occurring on January 31, 1999.
Withdrawals from the fund of $1000 each on the first day of each quarter are scheduled to start on January 1, 2006. No other deposits or withdrawals are made. The interest rate is at a nominal annual rate of 8% compounded monthly. Find the balance in the fund on December 31, 2010.
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