The amount that accumulates in 3 years if $ 2,500 is deposited at the beginning of each month in a bank that pays a 6.3% annual rate compounded monthly is: a. $ 99,301.39 b. $ 99,735.56 c. $ 101,233.00 d. $ 102,121.14

The amount that accumulates in 3 years if $ 2,500 is deposited at the beginning of each month in a bank that pays a 6.3% annual rate compounded monthly is: a. $ 99,301.39 b. $ 99,735.56 c. $ 101,233.00 d. $ 102,121.14

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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Question

100%

The amount that accumulates in 3 years if $ 2,500 is deposited at the beginning of each month in a bank that pays a 6.3% annual rate compounded monthly is:

a. $ 99,301.39

b. $ 99,735.56

c. $ 101,233.00

d. $ 102,121.14

Expert Solution

Given,

Monthly payment = $2,500

Interest rate = 6.3%

Time period = 3 Years

Step by step

Solved in 3 steps

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