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You deposit equal payments of $1000 in the bank for the next ten years. Assume the payments are made at the beginning of each year.
You deposit equal payments of $1000 in the bank for the next ten years. Assume the
payments are made at the beginning of each year. Given you will have $18,000 at the end of
ten years with quarterly compounding. What is the effective rate, the nominal rate and the
periodic rate of this investment? Does your equal payment period match your compounding
period?
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
