Equal deposits of 1000 are made at the end of each quarter


Equal deposits of $1000 are made at the end of each quarter in an account which earns 9.25% compounded monthly for 18 years.

a. State the effective rate for 9.25% compounded monthly to 2 decimal places. Correct: Your answer is correct. %

b. Using the value you got for part a, state the equivalent nominal rate converted quarterly to 9.25% compounded monthly to 2 decimal places. Correct: Your answer is correct. %

c. Using the nominal rate from part b, determine the balance of the account at the end of 18 years. $ Incorrect: Your answer is incorrect.

d. If no more deposits are made, but the money is left in the account accumulating interest for 4 more years, determine the amount in the account at the end of 22 years. Hint: Use 9.25% compounded monthly. $

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Financial Management: Equal deposits of 1000 are made at the end of each quarter
Reference No:- TGS02136834

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