3) For the transaction shown below, determine the amount of money in the account at the end of year 3 if the interest rate is 10% per year, compounded Semiannually, Assume no inter-period compounding End of the Quarter 1 2-5 6-8 9 10 11 Amount of Deposit $/ Quarter 900 700 600 1000 a) Draw the cash flow b) Find the Amount at the end of year 3 Amount of Withdrawal $/ Quarter 2600 2000
3) For the transaction shown below, determine the amount of money in the account at the end of year 3 if the interest rate is 10% per year, compounded Semiannually, Assume no inter-period compounding End of the Quarter 1 2-5 6-8 9 10 11 Amount of Deposit $/ Quarter 900 700 600 1000 a) Draw the cash flow b) Find the Amount at the end of year 3 Amount of Withdrawal $/ Quarter 2600 2000
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:3) For the transaction shown below, determine the amount of money in the account at the end of year 3 if
the interest rate is 10% per year, compounded Semiannually, Assume no inter-period compounding
End of the
Amount of Deposit
Amount of
Quarter
$/ Quarter
Withdrawal $/ Quarter
1
900
2-5
700
6-8
600
9.
2600
10
1000
11
2000
a) Draw the cash flow
b) Find the Amount at the end of year 3
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