Assume that you will need 60million shillings in your specialsaving account five years fromnow, to invest in a valuelincreasing project. You areprepared to make three equalannual deposits into the accountat the end of each year in orderto achieve this saving target (firstinstalment begins at the end ofyear 2 from now). There is noinflation and the bank imposedno charges at all on savingsaccount but it pays you intereston the balance at 9percent perannum. What amount must youdeposit in the account at eachyear - end?
Assume that you will need 60million shillings in your specialsaving account five years fromnow, to invest in a valuelincreasing project. You areprepared to make three equalannual deposits into the accountat the end of each year in orderto achieve this saving target (firstinstalment begins at the end ofyear 2 from now). There is noinflation and the bank imposedno charges at all on savingsaccount but it pays you intereston the balance at 9percent perannum. What amount must youdeposit in the account at eachyear - end?
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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Assume that you will need 60million shillings in your specialsaving account five years fromnow, to invest in a valuelincreasing project. You areprepared to make three equalannual deposits into the accountat the end of each year in orderto achieve this saving target (firstinstalment begins at the end ofyear 2 from now). There is noinflation and the bank imposedno charges at all on savingsaccount but it pays you intereston the balance at 9percent perannum. What amount must youdeposit in the account at eachyear - end?
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