What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 6% compounded quarterly? 6% Compounded quarterly 0 1 2 ' " $1,600 Quarters 3 4 5 6 7 1 ' ' $2,500 Q T T T A (Deposit)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 36P
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What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 6% compounded quarterly?
Q
6% Compounded quarterly
$2,500
$1,600
Quarters
0
1
2
3 4 5 6 7
8
The amount of the quarterly deposits A should be $
(Round to the nearest dollar.)
(Deposit)
Transcribed Image Text:What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 6% compounded quarterly? Q 6% Compounded quarterly $2,500 $1,600 Quarters 0 1 2 3 4 5 6 7 8 The amount of the quarterly deposits A should be $ (Round to the nearest dollar.) (Deposit)
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