Suppose that you start a savings account today with $ 265,000.00, from which you will make a single withdrawal for $ 180,000.00 within 15 months. Determine how much money you will have in the account in 3 years if the account pays interest as follows: In the first 6 months at a rate of 5% quarterly compounded continuously; in the next 9 months at an interest rate of 16% per annum compounded quarterly; and in the remaining months at a simple interest rate of 2% effective monthly.
I. Suppose that you start a savings account today with $ 265,000.00, from which you will make a single withdrawal for $ 180,000.00 within 15 months. Determine how much money you will have in the account in 3 years if the account pays interest as follows: In the first 6 months at a rate of 5% quarterly compounded continuously; in the next 9 months at an interest rate of 16% per annum compounded quarterly; and in the remaining months at a simple interest rate of 2% effective monthly. Also determine the total interest the account earns during those 2 years. MAKE A CASH FLOW CHART. II.Consider now that the account referred to in Problem I pays effective monthly
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