5. Suppose that the parents of a young child decide to make annual deposits into a savings account with the first deposit being made on the child's 5th birthday and the last deposit being made on the 15th birthday. Then starting on the child's 18th birthday, the withdrawals shown below will be made. If the effective annual interest rate is 8% during this period of time, what are the annual deposits in year 5 to 15? 2800 3200 2400 2000 5 bday 15th bdav 18 19 20 21 A = ?
5. Suppose that the parents of a young child decide to make annual deposits into a savings account with the first deposit being made on the child's 5th birthday and the last deposit being made on the 15th birthday. Then starting on the child's 18th birthday, the withdrawals shown below will be made. If the effective annual interest rate is 8% during this period of time, what are the annual deposits in year 5 to 15? 2800 3200 2400 2000 5 bday 15th bdav 18 19 20 21 A = ?
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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Answer number 5

Transcribed Image Text:5. Suppose that the parents of a young child decide to make annual deposits into a savings
account with the first deposit being made on the child's 5th birthday and the last deposit being
made on the 15th birthday. Then starting on the child's 18th birthday, the withdrawals shown
below will be made. If the effective annual interest rate is 8% during this period of time, what
are the annual deposits in year 5 to 15?
2800
3200
2400
2000
5 bday
15th bdav
18
19
20
21
A = ?
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