Mrs. Go make deposits that forms a geometric gradient that increases at 6% per month for 1 year. She deposits P 500 at the end of the first month. The deposit has an interest rate of 12% compounded monthly, compute: A) The present value of her deposits B) The equivalent uniform annual deposits C) The future value of her deposits
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Mrs. Go make deposits that forms a geometric gradient that increases at 6% per month for 1 year. She deposits P 500 at the end of the first month. The deposit has an interest rate of 12% compounded monthly, compute:
A) The present value of her deposits
B) The equivalent uniform annual deposits
C) The
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- You make deposits of $700 at the end of each month into an account earning i^(12) = .03 for three years. At the end of the three years, you take the accumulated value and purchase a 4 year annuity immediate at a rate of i^(12) = .06 that makes monthly payments of P. Find P.You deposit $1.2 milion into vour account to cover expenses in the next 12 vears. The account earns interest at the rate of 4%, compounded annually. Assume you expect the balance of the account to be $0 at the end of the 12th year. A) What annual level of living expenses Will your initial deposit support. (e.g., what equal annual withdrawal can you make for the next 12 years )? b) Suppose you realize your living expenses will increase at an annual rate of 2% due to inflation. Determine the updated annual spending plan in the line with this model how much can you withdrawal at the end of the first year. knowing that your withdrawal will increase by 2% each year? C) Suppose the initial deposit is still planned to support your equal annual expenses in the next 10 years as in part a but don't need to withdraw any money from your account for the first 6 years. You will withdraw from your account annually starting from the end of year 7 till the end of year 12. What annual level of living…1) Alisha invests 5,000 into an account. The effective monthly interest rate is .25% for the first six months, .5% for the next year, and .75% for the next six months. Find the amount Alisha has in the account after two years, and find the average compound monthly interest rate (i.e. the equivalent effective monthly interest rate) for the two year period. Finally, find the average yearly interest rate (i.e. the equivalent effective annual interest rate) for the two year period.
- You deposit $1.2 milion into vour account to cover expenses in the next 12 years. The account earns interest at the rate of 4%, compounded annually. Assume you expect the balance of the account to be $0 at the end of the 12th year. A) What annual level of living expenses Will your initial deposit support. (what equal annual withdrawal can you make for the next 12 years )? b) Suppose you realize vour living expenses will increase at an annual rate of 2% due to inflation. Determine the updated annual spending plan in line this model how much can you withdrawal at the end of the first year. knowing that your withdrawal will increase by 2% each year? C) Suppose the initial deposit is still planned to support vour equal annual expenses in the next 10 years as in part a but don't need to withdraw any money from your account for the first 6 years. You will withdraw rom your account annually starting from the end of year 7 till the end of year 12. What annual level of living expenses will your…Once per year Ritchie Rich deposits an amount of $800 in an account which pays 10% interest per year, compounded annually, with additional deposits of $800 continually made at the end of the year. If B, is the balance in the account, in dollars, immediately after Ritchie makes the nth deposit, then we can write B₁ = $800. (a) Complete the table to find the following. Report to the nearest $0.01. i) the balance, B, of the account on the day immediately after the second deposit. ii) the balance, B₁, of the account on the day immediately after the third deposit. iii) the balance, B₁, of the account on the day immediately after the fourth deposit 71 (Number of deposits) 1 2 OO B= $321158.22 (b) Suppose Ritchie makes 38 deposits. What is the balance of the account on the day immediately after the 38th deposit? 0 B$29923.47 B$29123.47 B= $264031.59 B, ($) $800 $ Number O B$291234.75 (It is more than $880.) $ Number S Number Q (c) Suppose Ritchie makes 438 deposits. Which is true about the…In the situation where Ahmad are depositing $1,000 per month in a savings account that pays 6 percent interest per year compounded quarterly. Here payment period is greater than compounding period. Select one: O True O False
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