Andrew deposit $2 into a fund at time 0. Money in this fund accumulates at an effective annual interest rate of i during the first 5 years, and at an effective annual interest rate of 2i thereafter. This deposit accumulates to 6.18 at the end of 10 years and to 27.47 at the end of 20 years. What is the value of the deposit at the end of 7 years?
Andrew deposit $2 into a fund at time 0. Money in this fund accumulates at an effective annual interest rate of i during the first 5 years, and at an effective annual interest rate of 2i thereafter. This deposit accumulates to 6.18 at the end of 10 years and to 27.47 at the end of 20 years. What is the value of the deposit at the end of 7 years?
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
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Andrew deposit $2 into a fund at time 0. Money in this fund accumulates at an effective
annual interest rate of i during the first 5 years, and at an effective annual interest rate of 2i thereafter.
This deposit accumulates to 6.18 at the end of 10 years and to 27.47 at the end of 20 years.
What is the value of the deposit at the end of 7 years?
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