Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and the interest is compounded monthly. Steven also plans to contribute another $10,000 to the account one year (12 months) from now and another $20,000 to the account two years from now. How much will be in the account three years (36 months) from now? A. $50,971 B. $49,542
Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and the interest is compounded monthly. Steven also plans to contribute another $10,000 to the account one year (12 months) from now and another $20,000 to the account two years from now. How much will be in the account three years (36 months) from now? A. $50,971 B. $49,542
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate,
and the interest is compounded monthly. Steven also plans to contribute another $10,000
to the account one year (12 months) from now and another $20,000 to the account two
years from now. How much will be in the account three years (36 months) from now?
A. $50,971
B. $49,542
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