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It is now January 1, 2018. You will deposit $1,000 today into a savings account that pays 8 percent. If the bank compounds interest annually,
- It is now January 1, 2018. You will deposit $1,000 today into a savings account that pays 8 percent.
- If the bank compounds interest annually, how much will you have in your account on January 1, 2021?
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- What would your January 1, 2021, balance be if the bank used quarterly compounding?
- Suppose you deposit $1,000 in 3 payments of $333.333 each on January 1 of 2019, 2020, and 2021. How much would you have in your account on January 1, 2021, based on 8 percent annual compounding?
- How much would be in your account if the 3 payments began on January 1, 2018?
- Suppose you deposit 3 equal payments in your account on January 1 of 2019, 2020, and 2021. Assuming an 8 percent interest rate, how large must your payments be to have the same ending balance as in part a?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
