QUESTION 2   The effective interest rate per month at the Bank of Port Royal is 0.019. The effective interest rate per year at the Bank of Shipwreck Cove is 0.330. Captain Jack Sparrow needs to accumulate money in order to buy a new ship . He makes payments of 2.200 at the beginning of each month for 17 months into his account at the Bank of Port Royal. At the end of each month, the interest credited by the Bank of Port Royal is immediately transferred into Jack Sparrow's account at the Bank of Shipwreck Cove. Calculate the total amount ( in both banks ) at the end of 17 months.

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
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The effective interest rate per month at the Bank of Port Royal is 0.019. The effective interest rate per year at the Bank of Shipwreck Cove is 0.330. Captain Jack Sparrow needs to accumulate money in order to buy a new ship . He makes payments of 2.200 at the beginning of each month for 17 months into his account at the Bank of Port Royal. At the end of each month, the interest credited by the Bank of Port Royal is immediately transferred into Jack Sparrow's account at the Bank of Shipwreck Cove. Calculate the total amount ( in both banks ) at the end of 17 months.

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