Question

2. A sum of money is deposited at the end ol every month for 10 years at 7.5%
compounded monthly. After the last deposit, interest for the account is to be 6%
compounded quarterly and the account is to be paid out by quarterly payments of $4800
over six years. What is the size of the monthly deposit (3 marks)​

Answer 1

Answer:

. The Answer is that the present value of $100 is $100. Because this $100 dollar is deposited today so the time is equal to zero and when time is zero the value of amount is the value of amount itself.