Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank account which pays J4= 6% (annual interest rate with quarterly compounding). a) Find the size of quarterly payments ? b) If, after 2 years, bank switches the rate to J4= 8%, what would be the size of quarterly payments for last 2 years required to meet the ₺15.000 goal?

Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank account which pays J4= 6% (annual interest rate with quarterly compounding). a) Find the size of quarterly payments ? b) If, after 2 years, bank switches the rate to J4= 8%, what would be the size of quarterly payments for last 2 years required to meet the ₺15.000 goal?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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