Your financial planner at the bank offers you a new investment product that earns interest using the
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Question:
Your financial planner at the bank offers you a new investment product that earns interest using the following scheme:
- Any amount deposited does not earn interest for the first month it is in the account.
- Afterwards, it earns interest at a rate of 0.5% at the end of every odd month (January, March, May, July, September, November), and 1% at the end of every even month (February, April, June, August, October, December).
(Note: These rates are not APRs.)
You'd like to make three equal deposits of PP to the account on October 1, 2022, February 1, 2023, and April 1, 2023.
Determine PP so that you have exactly $2000 on July 1, 2023.
Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
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