A student plans to deposit $1,500 in the bank now and another $3,000 for the next 2 years. If he or she plans to withdraw $5,000 three years from after his or her last deposit for the purpose of buying shoes, what amount of money is left in the bank after one year of his withdrawal? Assume an effective annual interest rate is 10%. Please Show All Work and formulas
A student plans to deposit $1,500 in the bank now and another $3,000 for the next 2 years. If he or she plans to withdraw $5,000 three years from after his or her last deposit for the purpose of buying shoes, what amount of money is left in the bank after one year of his withdrawal? Assume an effective annual interest rate is 10%. Please Show All Work and formulas
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
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Transcribed Image Text:A student plans to deposit $1,500 in the bank now
and another $3,000 for the next 2 years. If he or
she plans to withdraw $5,000 three years from
after his or her last deposit for the purpose of
buying shoes, what amount of money is left in the
bank after one year of his withdrawal? Assume an
effective annual interest rate is 10%.
Please Show All Work and formulas
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