You made a deposit of $200 in your bank account today and you plan to make a further deposit of $20 per month for three months starting from three months' time. Starting from six months from today, you plan to withdraw $30 per month for the next three months. At the end of the year how much money do you have in your bank account assuming that the bank gives you an interest rate of 3% per month. Draw the cash flow diagram. (Hint: An interest rate of 3% per month means an interest rate of 3% per month compounded monthly.)

You made a deposit of $200 in your bank account today and you plan to make a further deposit of $20 per month for three months starting from three months' time. Starting from six months from today, you plan to withdraw $30 per month for the next three months. At the end of the year how much money do you have in your bank account assuming that the bank gives you an interest rate of 3% per month. Draw the cash flow diagram. (Hint: An interest rate of 3% per month means an interest rate of 3% per month compounded monthly.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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