A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2969611 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 10% interest compounded semiannually, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st semiannual and increase the deposit by 5% per semiannual thereafter. What should be the size of his first semiannual deposit? Note: Draw the cash flow diagram and use interest rate with five decimal places. Box your final answer and upload picture of your solution. Round your answer to 2 decimal places.
A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2969611 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 10% interest compounded semiannually, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st semiannual and increase the deposit by 5% per semiannual thereafter. What should be the size of his first semiannual deposit? Note: Draw the cash flow diagram and use interest rate with five decimal places. Box your final answer and upload picture of your solution. Round your answer to 2 decimal places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![A self employed individual, Jimmy Carpenter, is opening a
retirement account at a bank. His goal is to accumulate
P2969611 in the account by the time he retires from work
in 20 years. A local bank is willing to open a retirement
account that pays 10% interest compounded
semiannually, throughout the 20 years. He wishes to start
with a deposit at the end of the end of 1st semiannual and
increase the deposit by 5% per semiannual thereafter.
What should be the size of his first semiannual deposit?
Note: Draw the cash flow diagram and use interest rate with
five decimal places. Box your final answer and upload the
picture of your solution.
Round your answer to 2 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae7a5acc-eb22-4366-b1e9-a7cca8bdecb3%2F380af7cd-d2e8-4a01-86b2-4ec3c3b4efdf%2Fv04jhsp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A self employed individual, Jimmy Carpenter, is opening a
retirement account at a bank. His goal is to accumulate
P2969611 in the account by the time he retires from work
in 20 years. A local bank is willing to open a retirement
account that pays 10% interest compounded
semiannually, throughout the 20 years. He wishes to start
with a deposit at the end of the end of 1st semiannual and
increase the deposit by 5% per semiannual thereafter.
What should be the size of his first semiannual deposit?
Note: Draw the cash flow diagram and use interest rate with
five decimal places. Box your final answer and upload the
picture of your solution.
Round your answer to 2 decimal places.
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