Regular equal amounts of R1200 are deposited into a savings account every three months for six years. If the amount in the savings account nine months after the last deposit is equal to R42 000 then, using Newton's method, the effective quarterly interest rate can be calculated from the iterative equation:
Regular equal amounts of R1200 are deposited into a savings account every three months for six years. If the amount in the savings account nine months after the last deposit is equal to R42 000 then, using Newton's method, the effective quarterly interest rate can be calculated from the iterative equation:
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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Regular equal amounts of R1200 are deposited into a savings account every three months for six years. If the amount in the savings account nine months after the last deposit is equal to R42 000 then, using Newton's method, the effective quarterly interest rate can be calculated from the iterative equation:
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