Problem 3 As a recent graduate you are considering opening a savings account. The account is expected to pay a 8% nominal annual interest rate, compounded quarterly, and you wish to have saved $250,000 at the end of 20 years. Calculate the payments to be made if they are to be equal and paid at a. the end of each quarter b. the end of each month c. the end of each year d. the beginning of each year

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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Problem 3
As a recent graduate you are considering opening a savings account. The account is
expected to pay a 8% nominal annual interest rate, compounded quarterly, and you wish
to have saved $250,000 at the end of 20 years. Calculate the payments to be made if
they are to be equal and paid at
a. the end of each quarter
b. the end of each month
c. the end of each year
d. the beginning of each year
Transcribed Image Text:Problem 3 As a recent graduate you are considering opening a savings account. The account is expected to pay a 8% nominal annual interest rate, compounded quarterly, and you wish to have saved $250,000 at the end of 20 years. Calculate the payments to be made if they are to be equal and paid at a. the end of each quarter b. the end of each month c. the end of each year d. the beginning of each year
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