c 6000 at the end of each month for eight years at 075 compounded monthly 317

C 6000 at the end of each month for eight years at

This preview shows page 2 - 4 out of 4 pages.

What is the amount C of quarterly depositssuch that you will be able to withdraw theamounts shown in the accompanying cash flowdiagram if the interest rate is 8% compoundedquarterly? 8% compounded quarterly (deposit)
Image of page 2
Problems 105 A series of equal quarterly deposits of $1.000extends over a period of three years. It is de- sired to compute the future worth of this quar- terly deposit series at 12% compounded monthly. Which of the following equations iscorrect for this operation? 3.22pays 8% interest compounded quarterly. How much money will be in each account six years after the transfer? A man is planning to retire in 25 years. Hewishes to deposit a regular amount every three months until he retires so that, beginning one year following his retirement, he will receive annual payments of $53,000 for the next 10 must he deposit if the interest rate is 8% compounded quarterly? 3.20 3.19Suppose you deposit $500 at the end of each quarter for five years at an interest rate of 8% compounded monthly. Which of following formulas will determine the equal annual endof-year deposit over five years that would accumulate the same amount under the same interest compounding? the Suppose a young newlywed couple is planningto buy a home two years from now. To save the down payment required at the time of pur- chasing a home worth $220,000 (let’s assume this down payment is 10% of the sales price, or $22,000), the couple has decided to set aside some money from their salaries at the end ofeach month. If the couple can earn 6 % interest (compounded monthly) on their savings, de- termine the equal amount the couple must de- posit each month so that they may buy the home at the end of two years. 3.21Georgi Rostov deposits $5,000 in a savingsaccount that pays 6 % interest compounded monthly. Three years later, he deposits $4.000.Two years after the $4.000 deposit, he makes another deposit in the amount of $2,500. Four years after the $2,500 deposit, half of the accumulated funds transferred to a fund that 3.23 is
Image of page 3
Image of page 4

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture