Question: Please solve part 1 and part 2. Thanks! Question 1. Suppose that you invest P dollars into a savings account at the beginning of every

 Please solve part 1 and part 2. Thanks! Question 1. Suppose

Please solve part 1 and part 2. Thanks!

Question 1. Suppose that you invest P dollars into a savings account at the beginning of every week. Your crazy banker decides to compound interest at a simple rate r at the end of Week 3, Week 8, and Week 12. Your banker will also compound interest at a simple rate s at the end of Week 7 and Week [11. 1. What is the value of the account at the end of Week 15? 2. At the end of the Week 15, you need to spend $10,000 on a car. How much money must you invest weekly to ensure you have exactly $10,000 after Week 15 if the simple interest rates are r = 8% and s= = 5%? Question 1. Suppose that you invest P dollars into a savings account at the beginning of every week. Your crazy banker decides to compound interest at a simple rate r at the end of Week 3, Week 8, and Week 12. Your banker will also compound interest at a simple rate s at the end of Week 7 and Week [11. 1. What is the value of the account at the end of Week 15? 2. At the end of the Week 15, you need to spend $10,000 on a car. How much money must you invest weekly to ensure you have exactly $10,000 after Week 15 if the simple interest rates are r = 8% and s= = 5%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!