Question
An investor is making level payments at the beginning of each year for 10 years to accumulate $10000 at the end of the 10 years
An investor is making level payments at the beginning of each year for 10 years to accumulate $10000 at the end of the 10 years in a bank which is paying 5% effective.
At the end of 5 years, the bank drops its interest rate to 4% effective.
- Find the annual deposit for the first 5 years
- Find the annual deposit for the second 5 years
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
