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
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
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7f78fe2-e344-4f3e-b408-71e7b7bce957%2F6c926b67-8c79-4c33-88e3-5aebabc67be4%2Fikicoj6_processed.png&w=3840&q=75)
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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