Starting from today, Susan deposits $1500 into a saving account A at the beginning of every year for 6 years. At the end of each year, just after interest is credited to the account, she withdraw the interest from the saving account A and deposit the interest into another saving account B. It is given that • The annual nominal interest rate of saving account A is iA = 6% convertible monthly and • The annual nominal interest rate of saving account B is íg = 8% convertible semiannually. Calculate the total value of two saving account at the end of 6th year.

Starting from today, Susan deposits $1500 into a saving account A at the beginning of every year for 6 years. At the end of each year, just after interest is credited to the account, she withdraw the interest from the saving account A and deposit the interest into another saving account B. It is given that • The annual nominal interest rate of saving account A is iA = 6% convertible monthly and • The annual nominal interest rate of saving account B is íg = 8% convertible semiannually. Calculate the total value of two saving account at the end of 6th year.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 36P

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