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Suppose You Deposit $1,000 at the End of Each Quarter A=$1,000(F/A,2%,20)(A/F,8%,5) A=\$ 1,000(F / A, 2 \%, 20)(A / F, 8 \%, 5)

Question 14

Multiple Choice

Suppose you deposit $1,000 at the end of each quarter for 5 years at an interest of 8% compounded
continuously. What equal end-of-year deposit over 5 years would accumulate the same amount at the end of 5
years under the same interest compounding (8%, compounded continuously) ? To answer the question, which of
the following is correct?


A) A=$1,000(F/A,2%,20) (A/F,8%,5) A=\$ 1,000(F / A, 2 \%, 20) (A / F, 8 \%, 5)
B) A=$1,000(F/A,e0.021,4) A=\$ 1,000\left(F / A, e^{0.02}-1,4\right)
C) A=$1,000(F/A,e0.021,20) (A/F,8%,5) A=\$ 1,000\left(F / A, e^{0.02}-1,20\right) (A /F, 8 \%, 5)
D) None of the above

Correct Answer:

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