In 1995 and 1996 Chewbacca deposits 10 credits every day into an account with the bank...

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In 1995 and 1996 Chewbacca deposits 10 credits every day into an account with the bank of Tatooine. In 1997, he deposits 12 credits every day. The account earns interest from the exact time of the deposit, with interest quoted as a quarterly effective rate. The rates are 2.5% in 1995 and 1996, and 5% in 1997. Find the amount in the account, including interest, on December 31 1997 in the two following ways: 1. Exactly based on the daily deposits; 2. Using the approximation that deposits are made continuously (HINT: use the accumulation factor of a continuous annuity, 5m|j) Q In 1995 and 1996 Chewbacca deposits 10 credits every day into an account with the bank of Tatooine. In 1997, he deposits 12 credits every day. The account earns interest from the exact time of the deposit, with interest quoted as a quarterly effective rate. The rates are 2.5% in 1995 and 1996, and 5% in 1997. Find the amount in the account, including interest, on December 31 1997 in the two following ways: 1. Exactly based on the daily deposits; 2. Using the approximation that deposits are made continuously (HINT: use the accumulation factor of a continuous annuity, 5m|j) Q

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Here are the steps to solve this problem 1 Exactly based on daily deposits 1995 365 days x 10 credit... View the full answer