Example [11] To find the balance in the account at the end of the calendar year, we calculate the effective interest rate, 6%/4 = 1.5% per quarter. Then, lumping the amounts at the effective dates. F...

fee cash flow diagram

Extracted text: Example [11] To find the balance in the account at the end of the calendar year, we calculate the effective interest rate, 6%/4 = 1.5% per quarter. Then, lumping the amounts at the effective dates. F = ($4000- $175)(F/P, 1.5%, 4) + ($1200 - $1800)(F[P, 1.5%, 3) + ($180- $800)(F/P, 1.5%, 2) + ($1600 - $1100)(F/P, 1.5%, 1)+ $2300 = $3825(1.0614)-$600(1.0457)-$620(1.0302) + $500(1.0150)+ $2300 %3D = $5601.21 %3D