An investment that earns intrest: Any amount deposited does not earn interest for the first month it is in the account. Afterwards, it earns interest at a rate of 1% at the end of every odd month (January, March, May, July, September, November), and 1.5% at the end of every even month (February, April, June, August, October, December). You'd like to make three equal deposits of P to the account on October 1, 2021, February 1, 2022, and April 1, 2022. Determine P so that you have exactly $2000 on July 1, 2022.
An investment that earns intrest: Any amount deposited does not earn interest for the first month it is in the account. Afterwards, it earns interest at a rate of 1% at the end of every odd month (January, March, May, July, September, November), and 1.5% at the end of every even month (February, April, June, August, October, December). You'd like to make three equal deposits of P to the account on October 1, 2021, February 1, 2022, and April 1, 2022. Determine P so that you have exactly $2000 on July 1, 2022.
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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An investment that earns intrest:
- Any amount deposited does not earn interest for the first month it is in the account.
- Afterwards, it earns interest at a rate of 1% at the end of every odd month (January, March, May, July, September, November), and 1.5% at the end of every even month (February, April, June, August, October, December).
You'd like to make three equal deposits of P to the account on October 1, 2021, February 1, 2022, and April 1, 2022.
Determine P so that you have exactly $2000 on July 1, 2022.
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