Hamilton wants to accumulate ₺ 20,000 at the end of 4 years. It starts quarterly payments in a bank account which pays J4= %4 (annual interest rate with quarterly compounding). a) Find the size of quarterly payments. b) If, after 2 years, bank switches the rate to J4= 8%, what would be the size of quarterly payments for last 2 years required to meet the 24,000 ₺ goal?
I. Hamilton wants to accumulate ₺ 20,000 at the end of 4 years. It starts quarterly payments in a bank account which pays J4= %4 (annual interest rate with quarterly compounding).
a) Find the size of quarterly payments.
b) If, after 2 years, bank switches the rate to J4= 8%, what would be the size of quarterly payments for last 2 years required to meet the 24,000 ₺ goal?
II. Ayhan invested 18,000 ₺ in an account that paid simple interest. How long he would need to invest in at 7% interest to accumulate 25,000₺ ?
III.
a) What would be the accumulated value of 500₺ in a saving account at 8% per year for 3 years when the
b) What would be the accumulated value of the same amount after 3 years with the same rate but not compounded (simple interest) annually?
Step by step
Solved in 3 steps
