An initial deposit of $8500 is made into an account now, and a second deposit of $16000 is made into the same account after 15 years. During the first 10 years, the account earns interest quoted at a nominal quarterly discount rate of d %. After 10 years have passed, any money in the account earns a nominal semi-annual interest rate of 4%. At the end of 30 years, the total value of the account will be $60981. What is the value of d (to the nearest 0.1%)?
An initial deposit of $8500 is made into an account now, and a second deposit of $16000 is made into the same account after 15 years. During the first 10 years, the account earns interest quoted at a nominal quarterly discount rate of d %. After 10 years have passed, any money in the account earns a nominal semi-annual interest rate of 4%. At the end of 30 years, the total value of the account will be $60981. What is the value of d (to the nearest 0.1%)?
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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Transcribed Image Text:An initial deposit of $8500 is made into an
account now, and a second deposit of $16000 is
made into the same account after 15 years. During
the first 10 years, the account earns interest
quoted at a nominal quarterly discount rate of d
%. After 10 years have passed, any money in the
account earns a nominal semi-annual interest rate
of 4%. At the end of 30 years, the total value of
the account will be $60981. What is the value of d
(to the nearest 0.1%)?
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