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

Today, April 1st 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 1st, 2023. Draw a cash-flow diagram.

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Expert Solution

Solution:

The 1st amount is deposited on 1st April 2020 and the last amount was deposited on January 1st 2023. Total month in between is 34.

The future value of total deposits = $48,802.88

jeff jeffy answered 1 year ago
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