You place $2,000 in an account that pays 8% interest compounded continuously. You plan to hold the account exactly 3 years. At the same time, in another account you deposit money that earns 9% compounded semiannually. If you want the accounts to have the same amount at the end of the 3 years, how much of an initial deposit do you need to make now in the account that pays 9% interest compounded semiannually?

You place $2,000 in an account that pays 8% interest compounded continuously. You plan to hold the account exactly 3 years. At the same time, in another account you deposit money that earns 9% compounded semiannually. If you want the accounts to have the same amount at the end of the 3 years, how much of an initial deposit do you need to make now in the account that pays 9% interest compounded semiannually?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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