You plan to make five deposits of $1,000 each, one every 6 months, with the first paymentbeing made in 6 months. You will then make no more deposits. If the bank pays6% nominal interest, compounded semiannually, how much will be in your accountafter 3 years?
You plan to make five deposits of $1,000 each, one every 6 months, with the first paymentbeing made in 6 months. You will then make no more deposits. If the bank pays6% nominal interest, compounded semiannually, how much will be in your accountafter 3 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
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Question
You plan to make five deposits of $1,000 each, one every 6 months, with the first payment
being made in 6 months. You will then make no more deposits. If the bank pays
6% nominal interest, compounded semiannually, how much will be in your account
after 3 years?
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