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A students deposits 1500 pesos in a 9% compounded semi-annuallyaccount today.He intends to deposit another...

A students deposits 1500 pesos in a 9% compounded semi-annually account today.He intends to deposit another 3000 pesos at the end of two years. He plans to purchase in five years his favorite shoes worth 5000 pesos. calculate the money that will be left in his account one year after the purchase

Solutions

Expert Solution

Deposit today = 1500 pesos

After 2 years = 3000 pesos

Interest rate = 9% compounded semi-annually

Calculating the effective interest rate

Calculating the future value

Future value after 6 years = 1,350 pesos

Rahul Sunny answered 2 years ago
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