With additional deposits of $800 continually made at the end of the year. If B, is the balance in the account, in dollars, immediately after Ritchie makes the nth deposit, then we can write B₁ = $800. (a) Complete the table to find the following. Report to the nearest $0.01. i) the balance, B₂, of the account on the day immediately after the second deposit. ii) the balance, B₁, of the account on the day immediately after the third deposit. iii) the balance, B₁, of the account on the day immediately after the fourth deposit. 71 (Number of deposits) 1 2 3 B. ($) $800 $ Number (It is more than $880.) $ Number year, compounded annually,
With additional deposits of $800 continually made at the end of the year. If B, is the balance in the account, in dollars, immediately after Ritchie makes the nth deposit, then we can write B₁ = $800. (a) Complete the table to find the following. Report to the nearest $0.01. i) the balance, B₂, of the account on the day immediately after the second deposit. ii) the balance, B₁, of the account on the day immediately after the third deposit. iii) the balance, B₁, of the account on the day immediately after the fourth deposit. 71 (Number of deposits) 1 2 3 B. ($) $800 $ Number (It is more than $880.) $ Number year, compounded annually,
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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Transcribed Image Text:Once per year Ritchie Rich deposits an amount of $800 in an account which pays 10% interest per year, compounded annually,
with additional deposits of $800 continually made at the end of the year.
If B, is the balance in the account, in dollars, immediately after Ritchie makes the nth deposit,
then we can write B₁ = $800.
(a) Complete the table to find the following. Report to the nearest $0.01.
i) the balance, B, of the account on the day immediately after the second deposit.
ii) the balance, B₁, of the account on the day immediately after the third deposit.
iii) the balance, B₁, of the account on the day immediately after the fourth deposit
71
(Number of deposits)
1
2
OO
B= $321158.22
(b) Suppose Ritchie makes 38 deposits.
What is the balance of the account on the day immediately after the 38th deposit?
0 B$29923.47
B$29123.47
B= $264031.59
B, ($)
$800
$ Number
O B$291234.75
(It is more than $880.)
$ Number
S Number
Q
(c) Suppose Ritchie makes 438 deposits. Which is true about the sum Ba?
i) The balance, Bas, of the account on the day immediately after the 438th deposit is
OB=800-104 +800-1047 ++800-10² +800-10 + 800
O B₁38 = 800 1.1437 +800-1.1436 ++800-1.1² + 800-1.1 +800
O B438=800-1.1438 +800-1.1437 +...+800-1.1² +800-1.1+800
OB=800-10437 +800-104 ++800-10² +800-10+800
O B43=800-10439 +800-10438 ++800-10² +800-10+800
OB=800-1.1439 +800-1.1438 + +800-1-1² +800-1.1+800
O None of these.
ii) The balance, B438, of the account on the day immediately after the 438th deposit is approximately
B438 $9810551030419638000000
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