Question 5 3. 1 3 4 EOY 6. 7 8. 9. 10 20 21 22 23 24 25 26 27 28 29 30 CF $300 A2 Аз A4 As Five deposits are made at the EOYS 2021-2025, as shown in the CF table above. The deposit amounts decrease by 10% every year. If the interest rate is 6% compounded annually, what is the amount in the account at the end of 2030?

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
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Please do it by hand. If not please do not respond. Write clear
U words
Question 5
EOY
3
4
6.
7
8
9.
10
21
22
23
24
25
26
27
29
30
CF
$300 A2
Аз
A4
A5
Five deposits are made at the EOYS 2021-2025, as shown in the CF table above. The deposit amounts decrease by 10% every year. If the interest
rate is 6% compounded annually, what is the amount in the account at the end of 2030?
DII
Home
@
%23
5S
T
28
20
3.
Transcribed Image Text:U words Question 5 EOY 3 4 6. 7 8 9. 10 21 22 23 24 25 26 27 29 30 CF $300 A2 Аз A4 A5 Five deposits are made at the EOYS 2021-2025, as shown in the CF table above. The deposit amounts decrease by 10% every year. If the interest rate is 6% compounded annually, what is the amount in the account at the end of 2030? DII Home @ %23 5S T 28 20 3.
Expert Solution
Step 1

This can be considered as a case of decreasing annuity in which the annuity amount is declining by 10% each year for the next 4 years.

 

 

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