A sum of money is deposited at the beginning of each year for 3 years at 12% p.a. compounded monthly. After the last deposit interest for the account is to be 8.24% p.a. compounded semi-annually and the account is to be paid out by payments of $1800.00, made at the beginning of each quarter for nine years. What is the size of the annual deposit?
A sum of money is deposited at the beginning of each year for 3 years at 12% p.a. compounded monthly. After the last deposit interest for the account is to be 8.24% p.a. compounded semi-annually and the account is to be paid out by payments of $1800.00, made at the beginning of each quarter for nine years. What is the size of the annual deposit?
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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A sum of money is deposited at the beginning of each year for 3 years at 12% p.a. compounded monthly. After the last deposit interest for the account is to be 8.24% p.a. compounded semi-annually and the account is to be paid out by payments of $1800.00, made at the beginning of each quarter for nine years. What is the size of the annual deposit?
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