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

Next > < Previous

Related Solutions

If Tony deposits $1,000 three years from now and then increases the deposit by $500 each...

If Tony deposits $1,000 three years from now and then increases the deposit by $500 each year through year 10, calculate the amount that will be in the account in year 10 at an interest rate of 10% per year.

Jimmy deposits : $ 4,200 - now, $ 2,100 - 3 years from now, and $...

Jimmy deposits : $ 4,200 - now, $ 2,100 - 3 years from now, and $ 4,200 - 6 years from now. Interest is 3 % for the first 3 years and 11 % for the last 3 years. What is the uniform series equivalent of the fund (uniform cash flow at end of years 1–6)? (Hint : Incorrect Answer = $3456)

Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest...

Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest is 5% for the first 3 years and 7% for the last 3 years. a) What is the uniform series equivalent of the fund (uniform cash flow at end of years 1 through 6)?

An individual makes six annual deposits in a savings account starting one year from now that...

An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10% compounded quarterly. Ten years after the last deposit, a withdrawal of $10,000 per year for 10 years is withdrawn from the account. How much would be the six annual deposits? Solve step by step and draw cash flow diagram.

Suppose you make deposits of $410 at the end of every three months for six years...

Suppose you make deposits of $410 at the end of every three months for six years into an account earning 2.09%2.09% compounded quarterly. After these six years you leave the money in the account, without making additional deposits for another thirteen years invested at the same interest rate of 2.09%2.09% compounded quarterly. How much will you have in the account after the first six years? (Round to the nearest cent.) N = I/Y = % P/Y = C/Y = PV = $...

John deposits $5000 into a bank for 5 years. (a) If he chooses simple interest at...

John deposits $5000 into a bank for 5 years. (a) If he chooses simple interest at 6% annually. How much he will have when the term ends?How much interest he has earned? (b) If he chooses compounded interest at 5% annually. How much he will have when the term ends? How much interest he has earned?

How much money would be accumulated 18 years from now from deposits of $10,000 per year...

How much money would be accumulated 18 years from now from deposits of $10,000 per year for 5 consecutive years, starting 5 years from now, if the interest rate is 9% per year? The amount that would be accumulated is?

You deposit into a savings account $4,000 now and $2500 three years from now. Then, the...

You deposit into a savings account $4,000 now and $2500 three years from now. Then, the next year you withdraw $1000 and another $1000 the following year. Then, you get a bonus from your company and deposit $2,000 at the end of year 6, and make no deposits or withdrawals the rest of the planning horizon. The interest rates are 4% during the first two years, then drops to 3% during the following three years, and then to 2% until...

a. What is the present value (PV) of $70,000 received six years from now, assuming the...

a. What is the present value (PV) of $70,000 received six years from now, assuming the interest rate is 4% per year? a. $47,024 b. $45,500 c. $96,814 d. $55,322 b. Convex Industries has inventories of $212 million, current assets of $1.20 billion, and current liabilities of $528 million. What is its quick ratio? a. 1.87 b. 2.25 c.0.94 d.0.75

Kaitlin wants to buy a bond that will mature to $5000 in six years. How much...

Kaitlin wants to buy a bond that will mature to $5000 in six years. How much should she pay for the bond now if it earns interest at a rate of 2.5% per year, compounded continuously? Do not round any intermediate computations, and round your answer to the nearest cent.

Subjects