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    Winston Ong
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    The document solves a multi-period compound interest problem where $100 is deposited at times 0 and 2, $75 is withdrawn at times 1 and 3, and the effective interest rate is 6%. Using simple interest equations for each time period, the final balance is calculated to be $65.

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    346#1.4

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    The document solves a multi-period compound interest problem where $100 is deposited at times 0 and 2, $75 is withdrawn at times 1 and 3, and the effective interest rate is 6%. Using simple interest equations for each time period, the final balance is calculated to be $65.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    346#1 4

    Uploaded by

    Winston Ong
    The document solves a multi-period compound interest problem where $100 is deposited at times 0 and 2, $75 is withdrawn at times 1 and 3, and the effective interest rate is 6%. Using simple interest equations for each time period, the final balance is calculated to be $65.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Winston Ong

    Math 346
    Problem #4

    Effective rate of 6%

    + 100 at t = 0 and t = 2
    - 75 at t = 1 and t = 3

    Simple interest equations

    0 ≤ t ≤ 1: 100 x .06 = 6

    1 ≤ t ≤ 2: 25 x .06 = 1.5

    2 ≤ t ≤ 3: 125 x .06 = 7.5

    t = 3: 50 + 6 + 1.5 + 7.5 = 65

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