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2. A series of m

2. A series of m

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2100. The first monthly deposit occurred on June 1, 2022, and the last monthly deposit will be on January 1, 2029. The account (the series of monthly deposits, 12% nominal interest, and monthly compounding) also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5000 and occurred on October 1, 2022. The last $5000 withdrawal will occur on January 1, 2029. How much remains in the account after the last withdrawal?
Transcribed Image Text:2. A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2100. The first monthly deposit occurred on June 1, 2022, and the last monthly deposit will be on January 1, 2029. The account (the series of monthly deposits, 12% nominal interest, and monthly compounding) also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5000 and occurred on October 1, 2022. The last $5000 withdrawal will occur on January 1, 2029. How much remains in the account after the last withdrawal?
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future annuity – suppose an equal sum of money is invested in the bank on a recurring basis what would be the future accumulation on that fund based on the interest calculation

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