A fund of 3000$ is to be accumulated by n annual payments of 65 at the...

A fund of 3000$ is to be accumulated by n annual payments of 65 at the end of each year, followed by n annual payments of 135 at the end of each year, followed by a final payment of 17.94 at the end of the next year. If the effective rate of interest is 6% per year, find n.

Expert Solution

orchestra answered 1 year ago

Investment A will make N annual payments of $500 with the first of the N payments due immediately.

6. Investment A will make N annual payments of $500 with the first of the N payments due immediately. Investment A has a value of $20,000. Investment B is an ordinary annuity that will make (N minus 1) annual payments of $500 with the first payment due in one year from today. If investment A and investment B have the same expected return, then what is the value of investment B? $20,500 The value of...

A demand loan of $6000 is repaid by payments of $3000 after two years, $3000 after...

A demand loan of $6000 is repaid by payments of $3000 after two years, $3000 after four years, and a final payment after seven years. Interest is 8% compounded quarterly for the first two years, 9% compounded semi-annually for the next two years, and 9% compounded quarterly thereafter. What is the size of the final payment?

A sinking fund is set up so that level annual payments will accumulate, at i %p.a...

A sinking fund is set up so that level annual payments will accumulate, at i %p.a compounding annually, to $50,000 in 10 years. Assuming the payments made are at each year-end, after exactly 5 years the sinking fund will be: [Note: a sinking fund allows for money to be set aside by periodical deposits in order to accumalte an amout to e.g replace equipment or repay debt due at a future date]

Please type SAS code for questions below Age < 65 N = Age ≥ 65 N...

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You buy a car with a down payment of $3000 and payments of $600 per month...

You buy a car with a down payment of $3000 and payments of $600 per month for 3 years. If the interest rate is 3.6% compounded monthly, what is the total cost of the car?

Compound annuity) What is the accumulated sum of each of the following streams of payments? a....

Compound annuity) What is the accumulated sum of each of the following streams of payments? a. $ 520 year for 9 years compounded annually at 11percent. b. $ 108 year for 6 years compounded annually at 9 percent. c. $ 33 year for 12 years compounded annually at 13 percent. d. $ 24 year for 5 years compounded annually at 4 percent. A. What is the accumulated sum of $ 520 year for years compounded annually at 11 percent? $(Round...

(Compound annuity) What is the accumulated sum of each of the following streams of payments? a....

(Compound annuity) What is the accumulated sum of each of the following streams of payments? a. $520 a year for 10 years compounded annually at 10 percent. b. $112 a year for 8 years compounded annually at 8 percent. c. $34 a year for 13 years compounded annually at 11 percent. d. $28 a year for 4 years compounded annually at 5 percent. a. What is the accumulated sum of $520 a year for 10 years compounded annually at 10...

What is the accumulated sum of each of the following streams of ordinary annuity payments? a....

What is the accumulated sum of each of the following streams of ordinary annuity payments? a. $35 per half-year for three and a half years at 14% p.a. compounded half- yearly. b. $25 a year for three years compounded annually at 2%. c. $500 a year for 10 years compounded annually at 5%

What is the accumulated sum of the following stream of payments? $1,938 every year at the...

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Barbara borrows $3000. She agrees to make monthly interest payments on the loan and will build...

Barbara borrows $3000. She agrees to make monthly interest payments on the loan and will build up a sinking fund with monthly deposits to repay the principal with a single payment 19 months from now. If the interest being charged on the loan is j12 = 8.5% and the interest being earned on the sinking fund is j12= 5.4%, what is the monthly cost of the debt for Barbara?

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