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Sebastian deposits $2200 (negative cash flows) into his savings account every two weeks (start in week 2). He also withdraws $200 (positive cash flows) each
Sebastian deposits $2200 (negative cash flows) into his savings account every two weeks (start in week 2). He also withdraws $200 (positive cash flows) each week for his weekly expenses. His savings account earns 4% monthly compounding. How much will he have in his account after 4 months? Assume borrowing rate = interest rate and 4 weeks/month. a. Use policy 1 (no within-period interest). b. Use policy 2 (with within-period interest).
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