Natalia makes a deposit of $2,000 into a savings account at the end of the 1st year and another one in the same amount at the end of the 3rd year. Manuel makes a deposit of $2,000 at the end of the 2nd year and another one in the same amount at the end of the 4th year. The effective annual interest rate on both investments is 10%. Determine by how much the accumulated amount in Natalia's account exceeds the accumulated amount in Manuel's account at the end of 5 years right after interests have been applied.
Natalia makes a deposit of $2,000 into a savings account at the end of the 1st year and another one in the same amount at the end of the 3rd year. Manuel makes a deposit of $2,000 at the end of the 2nd year and another one in the same amount at the end of the 4th year. The effective annual interest rate on both investments is 10%. Determine by how much the accumulated amount in Natalia's account exceeds the accumulated amount in Manuel's account at the end of 5 years right after interests have been applied.
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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Transcribed Image Text:2) Natalia makes a deposit of $2,000 into a savings account at the end of the 1st year and
another one in the same amount at the end of the 3rd year. Manuel makes a deposit
of $2,000 at the end of the 2nd year and another one in the same amount at the end of
the 4th
year. The effective annual interest rate on both investments is 10%. Determine
by how much the accumulated amount in Natalia's account exceeds the accumulated
amount in Manuel's account at the end of 5 years right after interests have been applied.
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