Question
A person wants to deposit a certain amount of money into a three-month time deposit account now. He wants to keep this money in the
A person wants to deposit a certain amount of money into a three-month time deposit account now. He wants to keep this money in the time deposit account for 10 years. The money will be compounded every three month. At the end of the 10th year this person will withdraw his money from the time deposit account and invest the money into a fund. This person wants to receive 8,000 TL from this fund at the end of every month for 25 years as an ordinary annuity. First payment will be received one month after he invests money into the fund. Annual interest rate for the time deposit account is 20 %. The fund will provide 24 % annual return. How much money does this person have to deposit into the three-month time deposit account now? (15 Points)
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