9-18 Bill made a budget and planned to deposit $150 a month in a savings account, beginning September 1. He did this, but on the following January 1, he reduced the monthly deposits to $100. He made 18 deposits, four at $150 and 14 at $100. If the sav- ings account paid 6% interest, compounded monthly, what was the future worth of his savings immediately after the last deposit? 9-18 $150 tiili $100 i= ½% F F = $150 (F/A, ½%, 4) (F/P, ½%, 14) + $100 (F/A, ½%, 14) = $150 (4.030) (1.072) + $100 (14.464) = 2,094.42 %3D %3D %3D
9-18 Bill made a budget and planned to deposit $150 a month in a savings account, beginning September 1. He did this, but on the following January 1, he reduced the monthly deposits to $100. He made 18 deposits, four at $150 and 14 at $100. If the sav- ings account paid 6% interest, compounded monthly, what was the future worth of his savings immediately after the last deposit? 9-18 $150 tiili $100 i= ½% F F = $150 (F/A, ½%, 4) (F/P, ½%, 14) + $100 (F/A, ½%, 14) = $150 (4.030) (1.072) + $100 (14.464) = 2,094.42 %3D %3D %3D
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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Transcribed Image Text:9-18 Bill made a budget and planned to deposit $150 a
month in a savings account, beginning September
1. He did this, but on the following January 1, he
reduced the monthly deposits to $100. He made 18
deposits, four at $150 and 14 at $100. If the sav-
ings account paid 6% interest, compounded monthly,
what was the future worth of his savings immediately
after the last deposit?
9-18
$150
tiili
$100
i= ½%
F
F = $150 (F/A, ½%, 4) (F/P, ½%, 14) + $100 (F/A, ½%, 14)
= $150 (4.030) (1.072) + $100 (14.464) = 2,094.42
%3D
%3D
%3D
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