Question
Suppose you have to make 5 annual payments of $1,000, the first at the beginning of year 5 (end of year 4 from now). To
Suppose you have to make 5 annual payments of $1,000, the first at the beginning of year 5 (end of year 4 from now). To accumulate the money to make these payments, you must make three equal deposits in an investment account, the first to be made within a year. Assuming an interest rate of 10% in the investment account, what is the amount of these three deposits?
(round to the nearest dollar)
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
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