8. lan has drawn the below timeline for all the deposits and withdrawals he made to his savings account. The interest rate is 4% p.a. compounded quarterly. The bank balance is zero before and after all the transactions on the timeline. Which of the following equations can be used to find X?/*- " Deposits Half-years Withdrawals $ 2,200 0 2 $3,200 3 A. 2200(1.01) +3200(1.01)³= 3500(1.01)² + X B. 2200+3200(1.01)³= 3500(1.01)* + X C. 2200(1.01)¹2 +3200(1.01)63500(1.01)* + X D. 2200+3200(1.04)³ = 3500(1.04) + X(1.04)-6 $3,500 5 6 X
8. lan has drawn the below timeline for all the deposits and withdrawals he made to his savings account. The interest rate is 4% p.a. compounded quarterly. The bank balance is zero before and after all the transactions on the timeline. Which of the following equations can be used to find X?/*- " Deposits Half-years Withdrawals $ 2,200 0 2 $3,200 3 A. 2200(1.01) +3200(1.01)³= 3500(1.01)² + X B. 2200+3200(1.01)³= 3500(1.01)* + X C. 2200(1.01)¹2 +3200(1.01)63500(1.01)* + X D. 2200+3200(1.04)³ = 3500(1.04) + X(1.04)-6 $3,500 5 6 X
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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8
Transcribed Image Text:8. lan has drawn the below timeline for all the deposits and withdrawals he made to his savings account. The
interest rate is 4% p.a. compounded quarterly. The bank balance is zero before and after all the transactions
on the timeline. Which of the following equations can be used to find X? /*-
"/
Deposits
Half-years
Withdrawals
$ 2,200
0
2
$3,200
3
A. 2200(1.01) +3200(1.01)³ = 3500(1.01)² + X
B. 2200+3200(1.01)-³ = 3500(1.01) + X
C. 2200(1.01)¹2+ 3200(1.01) = 3500(1.01)¹ + X
D. 22003200(1.04)3 = 3500(1.04) + X(1.04)-6
$3,500
5
6
X
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