Question
Question #1 (25 Points): A company is planning to make equal quarterly deposits into a bank account. They want their account to have 2 million
Question #1 (25 Points): A company is planning to make equal quarterly deposits into a bank account. They want their account to have 2 million dollars after 5 years from now because they want to buy a certain machine. Note that the first quarterly deposit is made today and the last deposit is made at the end of year 5. A) If the banks interest rate is 15% per year compounded monthly, how much should the company deposit each quarter? (12.5 points) B) If the banks interest rate is still 15% per year but compounded continuously, how much should the company deposit each quarter? (12.5 points)
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