Under your six-year savings plan, you deposit P1,000 now and P1,000 at the end of the fourth year, in a bank that earns 8% compounded annually. You decided to withdraw all your accumulated interest at the end of the second year, and the further interest plus principal at the end of the sixth year. Determine the balance in your investment account after six years.
Under your six-year savings plan, you deposit P1,000 now and P1,000 at the end of the fourth year, in a bank that earns 8% compounded annually. You decided to withdraw all your accumulated interest at the end of the second year, and the further interest plus principal at the end of the sixth year. Determine the balance in your investment account after six years.
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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Transcribed Image Text:1. Under your six-year savings plan, you deposit P1,000 now and P1,000 at the end of the fourth year,
in a bank that earns 8 % compounded annually. You decided to withdraw all your accumulated
interest at the end of the second year, and the further interest plus principal at the end of the sixth
year. Determine the balance in your investment account after six years.
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