Question

1	1.100	0.9091	1.0000	0.9091
. . .	. . .	. . .	. . .	. . .
6	1.7716	0.5645	7.7156	4.3553
7	1.9487	0.5132	9.4872	4.8684
8	2.1436	0.4665	11.4359	5.3349
9	2.3579	0.4241	13.5795	5.7590
10	2.5937	0.3855	15.9374	6.1446
11	2.8531	0.3505	18.5312	6.4951
12	3.1384	0.3186	21.3843	6.8137
13	3.4523	0.2897	24.5227	7.1034
14	3.7975	0.2633	27.9750	7.3667
15	4.1772	0.2394	31.7725	7.6061
16	4.5950	0.2176	35.9497	7.8237

1. Your client will make annual payments of $2,500 into a fund at the close of each year. She has asked you how many $2,500 annual payments will be required to bring the fund to $22,500 assuming that the fund earns interest at 10% compounded annually. Compute the total number of full payments of $2,500 required and the amount of the final payment if it does not require the entire $2,500.

Number of full payments:

Amount of last payment: $ (Round to the nearest dollar.)

2. Your client wishes to provide for the payment of an obligation of $200,000 due on July 1, 2026. He plans to deposit $20,000 in a special fund each July 1 for 7 years starting July 1, 2020. He wishes to make an initial deposit on July 1, 2019, of an amount that, with its accumulated interest, will bring the fund up to $200,000 at the maturity of the obligation. He expects that the fund will earn interest at the rate of 10% compounded annually. Compute the amount to be deposited July 1, 2019.

(Click here to access the PV and FV tables to use with this problem.)

Round your answer to two decimal places.

Initial deposit required: $

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.