An initial deposit of $9000 is made into an account now, and a second deposit of $21000 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 5.1%. At the end of 30 years, the total value of the account will be $109149. What is the value of d (to the nearest 0.1%)?

An initial deposit of $9000 is made into an account now, and a second deposit of $21000 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 5.1%. At the end of 30 years, the total value of the account will be $109149. What is the value of d (to the nearest 0.1%)?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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Question

An initial deposit of $9000 is made into an account now, and a second deposit of $21000 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
5.1%. At the end of 30 years, the total value of the account will be $109149. What is the value of d (to the nearest
0.1%)?
d as a percentage,
correct to 1 decimal

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