Suppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9% compounded monthly. What equal end-of-year depositover the ten years would accumulate the same amountat the end of the ten years under the same interestcompounding? To answer the question, which of thefollowing is correct?(a) A = $2,000(F/A, 2.267%, 4)(b) A = $2,000(F/A, 9%12 , 40) * (A/F, 9%, 10)(c) A = [$2,000(F/A, 2.25%, 40)] * (A/F, 9%, 10)(d) None of the above
Suppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9% compounded monthly. What equal end-of-year depositover the ten years would accumulate the same amountat the end of the ten years under the same interestcompounding? To answer the question, which of thefollowing is correct?(a) A = $2,000(F/A, 2.267%, 4)(b) A = $2,000(F/A, 9%12 , 40) * (A/F, 9%, 10)(c) A = [$2,000(F/A, 2.25%, 40)] * (A/F, 9%, 10)(d) None of the above
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
Related questions
Question
Suppose you deposit $2,000 at the end of each
quarter for ten years at an interest rate of 9% compounded monthly. What equal end-of-year deposit
over the ten years would accumulate the same amount
at the end of the ten years under the same interest
compounding? To answer the question, which of the
following is correct?
(a) A = $2,000(F/A, 2.267%, 4)
(b) A = $2,000(F/A, 9%
12 , 40) * (A/F, 9%, 10)
(c) A = [$2,000(F/A, 2.25%, 40)] * (A/F, 9%, 10)
(d) None of the above
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