Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor makes three deposits into a fund at the end of 1, 4, 6 years. The amount of the deposit at time is $

An investor makes three deposits into a fund at the end of 1, 4, 6 years. The amount of the deposit at time image text in transcribed is $image text in transcribed. Find the size of the fund at the end of 8 years, if the nominal rate of discount convertible quarterly is 0.06.

Here is what I tried:

image text in transcribed where image text in transcribed and image text in transcribed (nominal rate of discount).

I am showing this is incorrect, but I cannot manage to see where I am going wrong. It could be the equation itself is wrong, or it could be my algebra.

Thanks in advance!

****update: I realized I wasn't figuring in the 'convertible quarterly' into my equation, and of course, this resolved my issue. I now have the correct answer of $427.949701287*** Sorry for the waste of time lol

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance In A Changing World

Authors: Peter Birch Sorensen

1998th Edition

0333682211, 978-0333682210

More Books

Students also viewed these Finance questions