Question
1. Suppose we make a deposit into a savings account at the end of each quarter for ten years. Our first deposit is $1000 and
1. Suppose we make a deposit into a savings account at the end of each quarter for ten years. Our first deposit is $1000 and each subsequent deposit will be 10% greater than the previous one. If the savings account pays a nominal rate of interest of 3%converted monthly, find the amount of money in the account immediately following the final deposit.
2. Consider a perpetuity-due with annual effective interest rate i that has a payment every k years. The size of the jth payment is $j. Express the present value of this annuity using annuity notation.
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