ABC deposits $30,000 at the end of every quarter to save up $550000 for a capital project in 4 years. To achieve its goal, what is the norminal interest rate rate compounded quarterly does ABC required on its investment? What is the effecive rate?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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ABC deposits $30,000 at the end of every quarter to save up $550000 for a capital project in 4 years. To achieve its goal, what is the norminal interest rate rate compounded quarterly does ABC required on its investment? What is the effecive rate?

 

 

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