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A sum d is held on deposit for a year at a rate of interest of r. Interest is paid n times throughout the year and is calculated such that the 0 payment varies with the proportion of the year that has passed since the last paymnent. Which is the correct formula for the end of year balance, d ? Oa. b. OC. Od. 1/n d=d (1+n) n d₁ = (1+ - )" n d₁=d₂ (1 + — ) " n d₁=d_₂ (1+ 1¹ ) n n

A sum d is held on deposit for a year at a rate of interest of r. Interest is paid n times throughout the year and is calculated such that the 0 payment varies with the proportion of the year that has passed since the last paymnent. Which is the correct formula for the end of year balance, d ? Oa. b. OC. Od. 1/n d=d (1+n) n d₁ = (1+ - )" n d₁=d₂ (1 + — ) " n d₁=d_₂ (1+ 1¹ ) n n

Essentials Of Investments
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 sum d is held on deposit for a year at a rate of interest of r. Interest is paid n times throughout the year and is calculated such that the 0 payment varies with the proportion of the year that has passed since the last paymnent. Which is the correct formula for the end of year balance, d ? 1 a. Ob. C. d. d₁=d_(1+n) d₁= (1+ r n n 1/n r d₁=d_ (1+ — )" n n d₁=d_ (1+ -) " n
Transcribed Image Text:A sum d is held on deposit for a year at a rate of interest of r. Interest is paid n times throughout the year and is calculated such that the 0 payment varies with the proportion of the year that has passed since the last paymnent. Which is the correct formula for the end of year balance, d ? 1 a. Ob. C. d. d₁=d_(1+n) d₁= (1+ r n n 1/n r d₁=d_ (1+ — )" n n d₁=d_ (1+ -) " n
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