Q: Two years ago, on June 24th, 2018 you started saving for a bike. At that time, you made your first of a sequence of 5 consecutive equal deposits to pay for the bike. Last year, on June 24th, 2019, when you made your second deposit, your dad chipped in $500 to help you along your way to your goal of having $10,000 in three year’s time (which will be June 24th, 2023). Today, on June 24th, 2020, you made your third, out of the five deposits. Figure out what the deposits are such that you reach your goal. The interest rate over the entire period is 10%.

Q: Two years ago, on June 24th, 2018 you started saving for a bike. At that time, you made your first of a sequence of 5 consecutive equal deposits to pay for the bike. Last year, on June 24th, 2019, when you made your second deposit, your dad chipped in $500 to help you along your way to your goal of having $10,000 in three year’s time (which will be June 24th, 2023). Today, on June 24th, 2020, you made your third, out of the five deposits. Figure out what the deposits are such that you reach your goal. The interest rate over the entire period is 10%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

using formula sheet only

no excel

Q: Two years ago, on June 24th, 2018 you started saving for a bike. At that time, you made
your first of a sequence of 5 consecutive equal deposits to pay for the bike. Last year, on June
24th, 2019, when you made your second deposit, your dad chipped in $500 to help you along
your way to your goal of having $10,000 in three year’s time (which will be June 24th, 2023).
Today, on June 24th, 2020, you made your third, out of the five deposits. Figure out what the
deposits are such that you reach your goal. The interest rate over the entire period is 10%.

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