1. Bill holds a saving account. On the first day of every odd month (i.e.,...
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1. Bill holds a saving account. On the first day of every odd month (i.e., January, March, May, July, September, November) he deposits $100. Also, every year on February 1st he withdraws $600. Suppose that he started following this scheme on January 1st 2017, when he invested $100 for the first time, and that he had $500 in his account immediately before this deposit. Assume that the annual interest rate 12% is compounded monthly. a) (2 points) Find the effective monthly and annual interest rates. b) (3 points) What is the account balance on May 1st, 2017, immediately before the deposit on that day? c) (5 points) What is the account balance on May 1st, 2047, immediately before the deposit on that day? Hint: If n is even 1
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