Jasmine deposits 1000 into a savings account paying nominal interest rate of 6 percent compounded three times a year. She decides to deposit the same amount at the beginning of each third of the year for 20 years. The interest earned from this account is withdrawn at the end of each year only and reinvested into another account earning AEIR 8%. Find the accumulated value of Jasmine's money in both accounts at the end of the 20 years.
Jasmine deposits 1000 into a savings account paying nominal interest rate of 6 percent compounded three times a year. She decides to deposit the same amount at the beginning of each third of the year for 20 years. The interest earned from this account is withdrawn at the end of each year only and reinvested into another account earning AEIR 8%. Find the accumulated value of Jasmine's money in both accounts at the end of the 20 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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the answer should be around 124,696 please use equations snd steps to arrive at that answer
Transcribed Image Text:Jasmine deposits 1000 into a savings account paying nominal interest rate of 6
percent compounded three times a year. She decides to deposit the same
amount at the beginning of each third of the year for 20 years. The interest
earned from this account is withdrawn at the end of each year only and
reinvested into another account earning AEIR 8%. Find the accumulated value
of Jasmine's money in both accounts at the end of the 20 years.
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