An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10% compounded annually and after the last deposit the interest rate changed to 12% per year compounded annually. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How much would be the six annual deposits?
An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10% compounded annually and after the last deposit the interest rate changed to 12% per year compounded annually. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How much would be the six annual deposits?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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![An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10%
compounded annually and after the last deposit the interest rate changed to 12% per year compounded annually. Ten years after
his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How much would be the six annual deposits?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F165d5a7e-a42e-4986-bd34-d815afb18af1%2F32b6fce5-299f-496b-8574-d0aff4e19095%2Fvqr71d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10%
compounded annually and after the last deposit the interest rate changed to 12% per year compounded annually. Ten years after
his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How much would be the six annual deposits?
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