| (a) Find the amount of an original one-time deposit to make into an account that pays 1.2%APR compounded monthly, in order to have a balance in the account after 20 years of $4,000.Show the work and steps being sure to have two sides of any formula or equation from start tofinish. End with an equation stating your exact answer. Then, skip two lines.(b) Interpret your answer from (a) to write a short direct sentence equivalent.Then, skip three or four blank lines as space before the next problem.

An amount of deposit along with the sum has an interest that is credited on it. In short, a Future…

Answered: amount of an original one-time deposit…

Business

Finance

amount of an original one-time deposit to make into an account

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) Find the amount of an original one-time deposit to make into an account that pays 1.2%
APR compounded monthly, in order to have a balance in the account after 20 years of $4,000.
Show the work and steps being sure to have two sides of any formula or equation from start to
finish. End with an equation stating your exact answer. Then, skip two lines.
(b) Interpret your answer from (a) to write a short direct sentence equivalent.
Then, skip three or four blank lines as space before the next problem.

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