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Beginning in January, a person plans to deposit $100 at the end of each month into an account earning 12% compounded monthly. Each year taxes must be paid on the interest earned during that year. Find the interest earned during each year for the first 3 years.

Beginning in January, a person plans to deposit $100 at the end of each month into an account earning 12% compounded monthly. Each year taxes must be paid on the interest earned during that year. Find the interest earned during each year for the first 3 years.

Essentials Of Investments
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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Beginning in January, a person plans to deposit $100 at the end of each month into an account earning 12% compounded monthly. Each year taxes must be paid on the interest earned during that year. Find the interest earned during each year for the first 3 years. The interest earned during the first year is ? The interest earned during the second year is ? The interest earned during the third year is ?
Transcribed Image Text:Beginning in January, a person plans to deposit $100 at the end of each month into an account earning 12% compounded monthly. Each year taxes must be paid on the interest earned during that year. Find the interest earned during each year for the first 3 years. The interest earned during the first year is ? The interest earned during the second year is ? The interest earned during the third year is ?
Beginning in January, a person plans to deposit $100 at the end of each month into an account eaming 12% compounded monthy. Each year taxes must be paid on the interest eamed duning that year Pind me Interest earmed during each year for the first 3 years The interest eamed during the first year is $ (Round to the nearest cont as needed) The interest earned during the secornd year s (Round to the nearest cent an nooded) The interest oamed during the third year is (Round to the neast cent as noeded.)
Transcribed Image Text:Beginning in January, a person plans to deposit $100 at the end of each month into an account eaming 12% compounded monthy. Each year taxes must be paid on the interest eamed duning that year Pind me Interest earmed during each year for the first 3 years The interest eamed during the first year is $ (Round to the nearest cont as needed) The interest earned during the secornd year s (Round to the nearest cent an nooded) The interest oamed during the third year is (Round to the neast cent as noeded.)
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