Problem #8: An initial deposit of $11500 is made into an account now, and a second deposit of $25000 is made into the same account after 15 years. During the first 10 years, the account earns interest quoted at a nominal quarterly discount rate of d%. After 10 years have passed, any money in the account earns a nominal semi-annual interest rate of 7.1%. At the end of 30 years, the total value of the account will be $183062. What is the value of d (to the nearest 0.1%)?
Problem #8: An initial deposit of $11500 is made into an account now, and a second deposit of $25000 is made into the same account after 15 years. During the first 10 years, the account earns interest quoted at a nominal quarterly discount rate of d%. After 10 years have passed, any money in the account earns a nominal semi-annual interest rate of 7.1%. At the end of 30 years, the total value of the account will be $183062. What is the value of d (to the nearest 0.1%)?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 7P
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![Problem #8: An initial deposit of $11500 is made into an account now, and a second deposit of $25000 is made into the same
account after 15 years. During the first 10 years, the account earns interest quoted at a nominal quarterly discount
rate of d%. After 10 years have passed, any money in the account earns a nominal semi-annual interest rate of
7.1%. At the end of 30 years, the total value of the account will be $183062. What is the value of d (to the nearest
0.1%)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd3c3147-011e-442a-8bf9-af3591b7ce73%2Faa361a43-d4ae-4061-9ee2-844e63ce79a0%2Fxqyl24x_processed.png&w=3840&q=75)
Transcribed Image Text:Problem #8: An initial deposit of $11500 is made into an account now, and a second deposit of $25000 is made into the same
account after 15 years. During the first 10 years, the account earns interest quoted at a nominal quarterly discount
rate of d%. After 10 years have passed, any money in the account earns a nominal semi-annual interest rate of
7.1%. At the end of 30 years, the total value of the account will be $183062. What is the value of d (to the nearest
0.1%)?
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