Determine the size of the initial deposit

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Question - A deposit is made for a term of five years into a new savings account earning interest at 5.4% compounded monthly. At the end of the five-year term, the accumulated amount is converted into an income fund that pays interest at 5.9% compounded quarterly. The income fund provides payments of $1000 at the end of every three months for four years. Determine the size of the initial deposit.

Reference no: EM133173384

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