Question
a) Suppose the interest rate is 6.6% per year compounded monthly. Compute the amount Sarah must deposit in an account today so that she can
a) Suppose the interest rate is 6.6% per year compounded monthly. Compute the amount Sarah must deposit in an account today so that she can pay herself $350 per month for the next eleven years.
b) How much must Sarah deposit today if she wants to pay herself at the beginning of each month?
Please show your work :)
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Management Accounting
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
6th Edition
0077185536, 978-0077185534
