Mary makes year-end deposit of $4500, the first year increasing the year’s deposits by 8% until the end of the 10th year. Ellen makes equal start-of-year deposits of $6000 each year for 10 years. If interest on both funds is 12% compounded annually, how much is difference of savings at the end of ten years?
Mary makes year-end deposit of $4500, the first year increasing the year’s deposits by 8% until the end of the 10th year. Ellen makes equal start-of-year deposits of $6000 each year for 10 years. If interest on both funds is 12% compounded annually, how much is difference of savings at the end of ten years?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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- Mary makes year-end deposit of $4500, the first year increasing the year’s deposits by 8% until the end of the 10th year. Ellen makes equal start-of-year deposits of $6000 each year for 10 years. If interest on both funds is 12% compounded annually, how much is difference of savings at the end of ten years?
- Mr. Reyes borrows P600,000 at 15% compounded annually, agreeing to repay the loan in 25 equal annual payments. How much of the original principal is still unpaid after he has made the 12th payment?
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