Deepika deposits $10000 into her savings account that earns 7% per annum compounded annually for first two years, 8% compounded semi-annually for next three years and 12% compounded quarterly for the last two years. (i) Find the accumulated amount at the end of the first five years. (ii) Find the accumulated amount at the end of seven years.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Deepika deposits $10000 into her savings account that earns 7% per annum

compounded annually for first two years, 8% compounded semi-annually for next three

years and 12% compounded quarterly for the last two years.

(i) Find the accumulated amount at the end of the first five years.

(ii) Find the accumulated amount at the end of seven years.

 

 

b) Pathum deposits 100000 rupees which compounded annually with interest rate i per

annum. If the total amount doubles after 6 years find the value of i. (Hint: Use the

formula R = P(l + i)t )

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