Question (3) Mary made five annual deposits of $X1 in a savings account that pays interest at a rate of 6% per year. One year after making the last deposit, the interest rate changed to x2% per year. Five years after the last deposit, how much accumulated money can she withdraw from the account?

Question (3) Mary made five annual deposits of $X1 in a savings account that pays interest at a rate of 6% per year. One year after making the last deposit, the interest rate changed to x2% per year. Five years after the last deposit, how much accumulated money can she withdraw from the account?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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X1 = 810$ X2 = 7% write the complete equations used and substitute the values of the factors to find the final answer. Draw the cash flow diagram.

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