Question

In: Finance

Nemo deposits $7500 now, $5000 three years from now, and $1500 six years from now into...

Nemo deposits $7500 now, $5000 three years from now, and $1500 six years from now

into a fund paying 8% compounded quarterly: What equal deposit of size A, made every 3

months (with the first deposit at t=0 and last deposit at the end of the 7th year) are equal to the 3 deposits?

Solutions

Expert Solution

Use spreadsheet for the required computations. Enter values and formulas in the spreadsheet as shown in the image below.

The obtained result is provided below.

Thus, required quarterly savings will be $581.50.

jeff jeffy answered 1 year ago
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