On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly by making a $100 deposit. At the same time he set up an investment fund with a nominal interest rate of 4.6% payable quarterly. John deposited $400 into the investment fund at the end of each quarter with his first payment being on July 1, 1998. The quarterly interest payments from the fund were directly deposited into the 3.4% savings account. Find the balance (FV) in the 3.4% savings account on July 1, 2003, just after the twentieth interest deposit is received from the 4.6% fund and monthly interest 0f 3.4% has been credited.
On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly by making a $100 deposit. At the same time he set up an investment fund with a nominal interest rate of 4.6% payable quarterly. John deposited $400 into the investment fund at the end of each quarter with his first payment being on July 1, 1998. The quarterly interest payments from the fund were directly deposited into the 3.4% savings account. Find the balance (FV) in the 3.4% savings account on July 1, 2003, just after the twentieth interest deposit is received from the 4.6% fund and monthly interest 0f 3.4% has been credited.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
Related questions
Question
On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly by making a $100 deposit. At the same time he set up an investment fund with a nominal interest rate of 4.6% payable quarterly. John deposited $400 into the investment fund at the end of each quarter with his first payment being on July 1, 1998. The quarterly interest payments from the fund were directly deposited into the 3.4% savings account. Find the balance (FV) in the 3.4% savings account on July 1, 2003, just after the twentieth interest deposit is received from the 4.6% fund and monthly interest 0f 3.4% has been credited.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College