Our cat, Fred, has convinced me that I should set up an account that will assure him
Question:
Our cat, Fred, has convinced me that I should set up an account that will assure him of his Meow Mix for the next 4 years. I will deposit an amount P today that will permit Fred to make end-of-the-month with-drawls of $10 for the next 48 months. Consider an interest rate of 6% compounded monthly and that the account will be emptied with the last withdrawal.
(a) What is the value of P that I must deposit today?
(b) What is the account balance immediately after the 24th withdrawal has been made?
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i 612 per month a P 10 PA 05 48 10 42580 ...View the full answer
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Gaurav Soni
Teaching was always an area where I can pursue my passion. I used to teach my friends and junior during my school and college life. After completing my professional qualification (chartered accountancy) and before joining my job, I also joined an organization for teaching and guidance to my juniors. I had also written some articles during my internship which later got published. apart from that, I have also given some presentations on certain amendments/complex issues in various forms.
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