Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I added the...

Today, April 1^st 2020, I put $1000 into the bank. Every month thereafter I added the same amount, plus $20 more than the month before (i.e. $1020, $1040, $1060, etc.) If the sign on the door of my bank says they pay 6% nominal yearly interest, how much will I be able to take out of the bank on January 1^st, 2023. Draw a cash-flow diagram.

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Expert Solution

Note: It has been assumed that 0.05 percent interest is credited every month (because nominal interest rate is 6 percent per year). Thus, i can withdraw $ 47379 on January 1, 2023

Rahul Sunny answered 3 weeks ago

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