Alan makes deposits to an account at the end ofevery year for 12 years. His first deposit is $300 andeach subsequent deposit increases by $50.If the account earns an annual effective interest rateof 4%, what is the accumulated value of the accountafter 12 years?1,8503,7006,5907,3408,290

The future value of deposit increase with increase in deposit and interest accumulated over the…

Answered: each subsequent deposit If the account…

each subsequent deposit If the account earns an a of 4%, what is the accum after 12 years? 1,850 3,700 6,590 7,340 8,290

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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Question

Alan makes deposits to an account at the end of
every year for 12 years. His first deposit is $300 and
each subsequent deposit increases by $50.
If the account earns an annual effective interest rate
of 4%, what is the accumulated value of the account
after 12 years?
1,850
3,700
6,590
7,340
8,290

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