Question (3) Mary made five annual deposits of $X1 in a savings account that pays interest at a rate of 6% per year. One year after making the last deposit, the interest rate changed to x2% per year. Five years after the last deposit, how much accumulated money can she withdraw from the account?
Question (3) Mary made five annual deposits of $X1 in a savings account that pays interest at a rate of 6% per year. One year after making the last deposit, the interest rate changed to x2% per year. Five years after the last deposit, how much accumulated money can she withdraw from the account?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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X1 = 810$
X2 = 7%
write the complete equations used and substitute the values of the factors to find the final answer. Draw the cash flow diagram.
Transcribed Image Text:Question (3) Mary made five annual deposits of $X1 in a savings account that pays interest at a rate of 6% per year.
One year after making the last deposit, the interest rate changed to x2% per year. Five years after the last deposit,
how much accumulated money can she withdraw from the account?
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Redo the question using only equations and explain every step, DO not use excel. also draw a cashflow diagram.
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