Question
deposits $1,000 now, $2,000 2 years from now, and $5,000 5 years from now into a fund paying 12% compounded semiannually.
a. What sum of money will be accumulated at the end of sixth year?
b. What equal deposits of size A, made every 6 months (with the first deposit at t=0 and the last deposit at the end of the sixth year), are equivalent to the three deposits?
a. What sum of money will be accumulated at the end of sixth year?
b. What equal deposits of size A, made every 6 months (with the first deposit at t=0 and the last deposit at the end of the sixth year), are equivalent to the three deposits?