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.
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
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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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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