You buy a designer bag today using Afterpay, a service allowing you to spread the payments over
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You buy a designer bag today using Afterpay, a service allowing you to spread the payments over time. You will make 4 equal payments on the bag of $140. Your first payment will be 3 months (1 quarter) from now and your last payment will be one year from now. Your investment account earns a quarterly interest rate of 2.9 percent. How much must you deposit into your investment account today to generate exactly enough to make the 4 payments on the bag?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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