Question: please show all work and include cash flow diagram You decided to make annual deposits into and withdrawals from a savings account that earns a
You decided to make annual deposits into and withdrawals from a savings account that earns a 15% interest rate compounded monthly. (a) Compute (i) the effective annual interest rate, (ii) the effective quarterly interest rate, (iii) the effective daily interest rate, and (iv) effective continuous interest rate on these deposits and withdrawals. (b) What is the present worth of all your annual deposits into and withdrawals from the savings account if you deposit right now $10,000.00, you deposit $10,000.00 the first year, you withdraw $20,000.00 the second year, the third year you withdraw $30,000.00 and the fourth year you deposit $40,000.00? Draw the cash flow diagram for these withdrawals and deposits into your savings account
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