It is now January 1. You plan to make a total of 14 deposits of $7,000 each, one every 3 months with the first payment being made today. The bank pays a nominal interest rate of 9% but uses quarterly compounding. How much your account with the bank be if you leave the money in the bank to be withdrawn all in 18 years from today?

It is now January 1. You plan to make a total of 14 deposits of $7,000 each, one every 3 months with the first payment being made today. The bank pays a nominal interest rate of 9% but uses quarterly compounding. How much your account with the bank be if you leave the money in the bank to be withdrawn all in 18 years from today?

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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Best Bank pays 6% interest rate compounded monthly. However, your deposit will be annually. Your first deposit of $8000 will be made immediately (Year 0). Additionally you will make the following deposit end of each years for 5 years Years 1 & 2: $7000 each year Years 3 & 4: $6000 each year Years 5: $5000 How much will be in the account at the end of five years? $46.095.54 $46,194.01 $39,538.74 $46.154.20 $52.190.80 $45.981.86

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