Hamilton wants to accumulate ₺ 35000 at the end of 4 years. It starts quarterly payments in a bank account which pays J4= 5% (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 ₺ 50000 goal?
Hamilton wants to accumulate ₺ 35000 at the end of 4 years. It starts quarterly payments in a bank account which pays J4= 5% (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 ₺ 50000 goal?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 10P
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I. Hamilton wants to accumulate ₺ 35000 at the end of 4 years. It starts quarterly payments in a bank account which pays J4= 5% (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 ₺ 50000 goal?
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