0% compounded annually and after the last deposit the interest rate changed to 129% per year compounded ally. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How h would be the six annual deposits? P1,625 P1,451

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
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 Write the solution including the CASH FLOW DIAGRAM

An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate
of 10% compounded annually and after the last deposit the interest rate changed to 12% per year compounded
annually. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How
much would be the six annual deposits?
(А) Р1,625
в) Р1,451
c) P1,911
P1,738
Transcribed Image Text:An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10% compounded annually and after the last deposit the interest rate changed to 12% per year compounded annually. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How much would be the six annual deposits? (А) Р1,625 в) Р1,451 c) P1,911 P1,738
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