To find the balance in the account at the end of the calendar year, we calculate the effective interest rate, 6%/4 = 1.5% per quarter. Then, lumping the amounts at the effective dates. F = ($4000- $175)(F[P, 1.5%, 4)+ (S1200- $1800)(F/P, 1.5%, 3) + ($180- $800)(F/P, 1.5%, 2) + ($1600 - $1100)(F/P, 1.5%, 1) + $2300 = $3825(1.0614) -$600(1.0457)- $620(1.0302)+ $500(1.0150)+ $2300 %3D $5601.21

To find the balance in the account at the end of the calendar year, we calculate the effective interest rate, 6%/4 = 1.5% per quarter. Then, lumping the amounts at the effective dates. F = ($4000- $175)(F[P, 1.5%, 4)+ (S1200- $1800)(F/P, 1.5%, 3) + ($180- $800)(F/P, 1.5%, 2) + ($1600 - $1100)(F/P, 1.5%, 1) + $2300 = $3825(1.0614) -$600(1.0457)- $620(1.0302)+ $500(1.0150)+ $2300 %3D $5601.21

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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