You wish to make 4 equal annual deposits into a savings account such that at the time of your last deposit there is $108,581 in the savings account. If the interest rate on the account is an annual nominal interest rate of 3.9% compounded daily, how much must the equal annual deposits be? Provide an exact answer to two decimal places.
You wish to make 4 equal annual deposits into a savings account such that at the time of your last deposit there is $108,581 in the savings account. If the interest rate on the account is an annual nominal interest rate of 3.9% compounded daily, how much must the equal annual deposits be? Provide an exact answer to two decimal places.
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:You wish to make 4 equal annual deposits into a savings account such that at the time
of your last deposit there is $108,581 in the savings account. If the interest rate on
the account is an annual nominal interest rate of 3.9% compounded daily, how much
must the equal annual deposits be? Provide an exact answer to two decimal places.
-Be sure to use the correct annual interest rate when determining the required annual
deposit (i.e. you must use the effective annual interest rate)
-Use 365 days for the number of days in a year
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