The parents of a child decided to make annual deposits into a saving account, with the first deposit being made on the child’s sixth birthday and the last deposit on the 14th birthday. Then, starting on the child’s 16th to the 19th birthday the withdrawals are $3,000, $3,400, $3,800, and $4,200 respectively. If the effective annual interest rate is 6% during this period of time. What are the annual deposits in years 6 through 14? Use a uniform gradient amount (G) in your solution
The parents of a child decided to make annual deposits into a saving account, with the first deposit being made on the child’s sixth birthday and the last deposit on the 14th birthday. Then, starting on the child’s 16th to the 19th birthday the withdrawals are $3,000, $3,400, $3,800, and $4,200 respectively. If the effective annual interest rate is 6% during this period of time. What are the annual deposits in years 6 through 14? Use a uniform gradient amount (G) in your solution
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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The parents of a child decided to make annual deposits into a saving account, with the first
deposit being made on the child’s sixth birthday and the last deposit on the 14th birthday. Then,
starting on the child’s 16th to the 19th birthday the withdrawals are $3,000, $3,400, $3,800, and
$4,200 respectively. If the effective annual interest rate is 6% during this period of time.
What are the annual deposits in years 6 through 14? Use a uniform gradient amount (G) in
your solution
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