(a) Carlos is saving up for the downpayment on a house. They will make quarterly deposits of $1,000.00 (at the start of each period) into a savings account paying 4.40% compounded daily. After 51 periods, they will change the quarterly deposit amount to $3,000.00. How much money will they have in their account after 102 more periods (153 periods in total)?
(a) Carlos is saving up for the downpayment on a house. They will make quarterly deposits of $1,000.00 (at the start of each period) into a savings account paying 4.40% compounded daily. After 51 periods, they will change the quarterly deposit amount to $3,000.00. How much money will they have in their account after 102 more periods (153 periods in total)?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 31P
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(a) Carlos is saving up for the downpayment on a house. They will make quarterly deposits of $1,000.00 (at the start of each period) into a savings account paying 4.40% compounded daily. After 51 periods, they will change the quarterly deposit amount to $3,000.00. How much money will they have in their account after 102 more periods (153 periods in total)?
(b) Aditya wins a bet! Wing Sze will pay Aditya $3.00 at the start of every two weeks for 84 periods. Currently, the interest rate is 3.15% compounded bi-weekly, but Aditya expects it to change to 3.65% at the end of 42 periods. How much would Aditya accept in cash to settle the bet?
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