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Hey! Kindly provide clear and detailed analysis. This is a Math of Finance class. Thank you!! Problem 3. You deposit 1500 dollars in an account
Hey! Kindly provide clear and detailed analysis. This is a Math of Finance class. Thank you!!
Problem 3. You deposit 1500 dollars in an account with a bimonthly (every two months) compounding interest rate of 10%. (a) (5 Points) After how many months your account will surpass 3000 dollars? (b) (5 Points) If at the end of every two-month period you deposit 150 dollars in your account, how many months will it take you to surpass 3000 dollars? (Hint: use geometric series) (Remark: Since the compounding is bimonthly, the answers should be even numbers.)Step by Step Solution
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