Topic: Gradient Geometric A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2908875 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 10% interest compounded semiannually, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st semiannual and increase the deposit by 5% per semiannual thereafter. What should be the size of his first semiannual deposit? Note: Draw the cash flow diagram and use interest rate with five decimal places.
Topic: Gradient Geometric A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2908875 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 10% interest compounded semiannually, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st semiannual and increase the deposit by 5% per semiannual thereafter. What should be the size of his first semiannual deposit? Note: Draw the cash flow diagram and use interest rate with five decimal places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Topic: Gradient Geometric
A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2908875 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 10% interest compounded semiannually, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st semiannual and increase the deposit by 5% per semiannual thereafter. What should be the size of his first semiannual deposit?
Note: Draw the cash flow diagram and use interest rate with five decimal places.
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