A person wants to accumulate $22.425 at the end of 6 years. It starts quarterly payments in a bank account which pays J4=7%. After 3 years, bank increases the rate to j4= 8%. Find the size of quarterly payments for last 3 years required to meet the $22.425 goal?

A person wants to accumulate $22.425 at the end of 6 years. It starts quarterly payments in a bank account which pays J4=7%. After 3 years, bank increases the rate to j4= 8%. Find the size of quarterly payments for last 3 years required to meet the $22.425 goal?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

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A person wants to accumulate $22.425 at the end of 6 years. It starts quarterly payments in a bank account which pays J4=7%. After 3 years, bank increases the rate to j4= 8%. Find the size of quarterly payments for last 3 years required to meet the $22.425 goal?

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