Question
a) Suppose you want to have $3,241 in a savings account three years from now. If the interest rate on the savings account is 6%,
a) Suppose you want to have $3,241 in a savings account three years from now. If the interest rate on the savings account is 6%, compounded monthly, how much must you deposit in the savings account today?
b) If you put $700 in a savings account with a 10% annual rate of interest compounded monthly, what will the investment be worth in 29 months (round to the nearest dollar)?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
3rd Edition
0471375942, 978-0471375944
