hannon made periodic deposits into a savings account at the end of every month for 2 years. The investments were earning 5.70% compounded quarterly and grew to $13,625.00 at the end of 2 years. a. Calculate the size of the month-end deposits. b. How long will it take for the $13,625.00 to accumulate to $39,360.00 if the interest rate remained the same and he continued making the same month-end deposits throughout the term?
hannon made periodic deposits into a savings account at the end of every month for 2 years. The investments were earning 5.70% compounded quarterly and grew to $13,625.00 at the end of 2 years. a. Calculate the size of the month-end deposits. b. How long will it take for the $13,625.00 to accumulate to $39,360.00 if the interest rate remained the same and he continued making the same month-end deposits throughout the term?
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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Shannon made periodic deposits into a savings account at the end of every month for 2 years. The investments were earning 5.70% compounded quarterly and grew to $13,625.00 at the end of 2 years.
a. Calculate the size of the month-end deposits.
b. How long will it take for the $13,625.00 to accumulate to $39,360.00 if the interest rate remained the same and he continued making the same month-end deposits throughout the term?
Please answer both subparts.
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