I. Hamilton wants to accumulate ₺30000 at the end of 4 years. It starts quarterly payments in a bank account that pays J4= 4 % (annual interest rate with quarterly compounding). a) Find the size of quarterly payments. b) If, after 2 years, the bank switches the rate to J4= 8%, what would be the size of quarterly payments for the last 2 years required to meet the ₺30000 goal?
I. Hamilton wants to accumulate ₺30000 at the end of 4 years. It starts quarterly payments in a bank account that pays J4= 4 % (annual interest rate with quarterly compounding). a) Find the size of quarterly payments. b) If, after 2 years, the bank switches the rate to J4= 8%, what would be the size of quarterly payments for the last 2 years required to meet the ₺30000 goal?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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I. Hamilton wants to accumulate ₺30000 at the end of 4 years. It starts quarterly payments in a bank account that pays J4= 4 % (annual interest rate with quarterly compounding).
a) Find the size of quarterly payments.
b) If, after 2 years, the bank switches the rate to J4= 8%, what would be the size of quarterly payments for the last 2 years required to meet the ₺30000 goal?
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