An investment banker would like to receive $1,200 at the beginning of every 3 months from her investment fund for a period of 10 years. The fund is earning 3.3% compounded quarterly. Calculate the amount of money she should deposit if the first payment is to be received in 5 years and 9 months. Round to the nearest cent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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An investment banker would like to receive $1,200 at the beginning of every 3 months
from her investment fund for a period of 10 years. The fund is earning 3.3%
compounded quarterly. Calculate the amount of money she should deposit if the first
payment is to be received in 5 years and 9 months.
Round to the nearest cent
Transcribed Image Text:An investment banker would like to receive $1,200 at the beginning of every 3 months from her investment fund for a period of 10 years. The fund is earning 3.3% compounded quarterly. Calculate the amount of money she should deposit if the first payment is to be received in 5 years and 9 months. Round to the nearest cent
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