Joe deposits GHS10 today and another GHS30 in five years into a fund paying simple interest of 11% per year. Tina will make the same two deposits, but the GHS10 will be deposited n years from today and the GHS30 will be deposited 2n years from today. Tina’s deposits earn an annual effective rate of 9.15%. At the end of 10 years, the accumulated amount of Tina’s deposits equals the accumulated amount of Joe’s deposits. Calculate n.
Joe deposits GHS10 today and another GHS30 in five years into a fund paying simple interest of 11% per year. Tina will make the same two deposits, but the GHS10 will be deposited n years from today and the GHS30 will be deposited 2n years from today. Tina’s deposits earn an annual effective rate of 9.15%. At the end of 10 years, the accumulated amount of Tina’s deposits equals the accumulated amount of Joe’s deposits. Calculate n.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
Related questions
Question
Joe deposits GHS10 today and another GHS30 in five years into a fund paying simple interest of 11% per year. Tina will make the same two deposits, but the GHS10 will be deposited n years from today and the GHS30 will be deposited 2n years from today. Tina’s deposits earn an annual effective rate of 9.15%. At the end of 10 years, the accumulated amount of Tina’s deposits equals the accumulated amount of Joe’s deposits.
Calculate n.
(
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning