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To withdraw the following $ 1,000 payment series in the figure, determine the minimum deposite (P) you should make now if your deposits earn an interest rate of 10 % compounded anually. Note that you are making another deposite at the end of year 7 in the amount of $ 500. With the minimum deposit P, your balance at the end of year 10 should be 0. SL000 || LO $500 A. P=$4,912 B. P=$ 4,465 C. P=$ 5,374 D. P=$ 5,912

To withdraw the following $ 1,000 payment series in the figure, determine the minimum deposite (P) you should make now if your deposits earn an interest rate of 10 % compounded anually. Note that you are making another deposite at the end of year 7 in the amount of $ 500. With the minimum deposit P, your balance at the end of year 10 should be 0. SL000 || LO $500 A. P=$4,912 B. P=$ 4,465 C. P=$ 5,374 D. P=$ 5,912

Essentials Of Investments
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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Problem 3 To withdraw the following $ 1,000 payment series in the figure, determine the minimum deposite (P) you should make now if your deposits earn an interest rate of 10 % compounded anually. Note that you are making another deposite at the end of year 7 in the amount of $ 500. With the minimum deposit P, your balance at the end of year 10 should be 0. SLO00 • 10 $ 500 A. P= $ 4,912 B. P= $ 4,465 C. P= $ 5,374 D. P=$ 5,912
Transcribed Image Text:Problem 3 To withdraw the following $ 1,000 payment series in the figure, determine the minimum deposite (P) you should make now if your deposits earn an interest rate of 10 % compounded anually. Note that you are making another deposite at the end of year 7 in the amount of $ 500. With the minimum deposit P, your balance at the end of year 10 should be 0. SLO00 • 10 $ 500 A. P= $ 4,912 B. P= $ 4,465 C. P= $ 5,374 D. P=$ 5,912
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