Question

Assume you invest money by making three equal deposits of SR 8,000 over three years (starting at the end of year 1, i.e. at n=1) to a saving account . Furthermore, assume you make withdrawals from the saving account of SR 2500 at n=1, SR 3000 at n=2 and SR 3500 at n=3. What will be the net balance of the saving account at the end of year 4 if your annual earing interest rate is 14% (chose the closest answer)?

a) SR 16938 |
||

b) SR 18320 |
||

c) SR 17620 |
||

d) SR 19039 |
||

e) SR 19776 |

Answer #1

Assume you invest money by making three equal deposits of SR
8,000 over three years (starting at the end of year 1, i.e. at n=1)
to a saving account . Furthermore, assume you make withdrawals from
the saving account of SR 2500 at n=1, SR 3000 at n=2 and SR 3500 at
n=3. What will be the net balance of the saving account at the end
of year 4 if your annual earing interest rate is 14% (chose the
closest...

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Mary Jo plans to invest some money so that she has $8,000 at the
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Option A
Option B
Option C
Option D
APR
5.19%
5.11%
5.20%
5.40%
m/per year
365
12
4
1
How much should she invest today given the choices above?
What is her best choice?
What is the EAR for each account? Support your decision in
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7.
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With the...

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