A fund to replace a deterioratingmachine will be formed by depositing$2000 at the beginning of each 6months for 7 years. If the fundaccomulates at 7% compoundedsemi annually; how much is in it (a) atthe end of 7 years (b) just after the8th deposit; (c) just after the lastdeposit

Semiannual deposit (C) = $2000 Semiannual interest rate (r) = 0.035 (i.e. 0.07 / 2) a. Semiannual…

Answered: A fund to replace a deteriorating…

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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A fund to replace a deteriorating machine will be formed by depositing $2000 at the beginning of each 6 months for 7 years. If the fund accomulates at 7% compounded semi annually; how much is in it (a) at the end of 7 years (b) just after the 8th deposit; (c) just after the last deposit