a) A company plans to purchase a large piece of machinery with $5240 semi-annual payments for...

a) A company plans to purchase a large piece of machinery with $5240 semi-annual payments for 36 months. If the interest rate on the loan is 2.34% p.a. compounded semi-annually, what is the cash price of the machine? State your answer in dollars ($) with two decimals.

b) How many years will it take to pay off $4500 if payments of $411 are made at the end of every six months at 5.1% p.a. compounded semi-annually?

c)

Draw a timeline in your notes to practice, then use the one below to help you! An employee is planning to retire in 30 years. To plan for this retirement, he deposits $10 000 at the end of each year into a savings plan. The balance is then converted into a fund from which end-of-year withdrawals of $50 000 are made. If money is worth 3.99% compounded annually, for how long will he receive payments?

Expert Solution

jeff jeffy answered 2 years ago

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