A sum of $1200 is deposited today into an account earning interest at 7.0% p.a. convertible 2 times a year. What deposit should be made in 2 years time if the account is to accumulate to $5600 in 6 years from today?
TO make it easier for you guys, The deposit of $1200 accumulated for (2×6) time units plus the accumulation of $X for the appropriate number of time units will equal $5600.
As an example to check your method, suppose that $1,200 is deposited today into an account earning 10% p.a. convertible 4 times a year. What deposit should be made in 3 years time if the account is to accumulate to $5,000 in 4 years from today? The answer is $2,915.89)
TO make it easier for you guys, The deposit of $1200 accumulated for (2×6) time units plus the accumulation of $X for the appropriate number of time units will equal $5600.
As an example to check your method, suppose that $1,200 is deposited today into an account earning 10% p.a. convertible 4 times a year. What deposit should be made in 3 years time if the account is to accumulate to $5,000 in 4 years from today? The answer is $2,915.89)