A person wants to buy a piece of land after 12 years. The current price of the land is $300,000. Inflation rate is 4%. He wants to save by making semiannual deposits at an interest rate of 14%. Compute the amount of the payments. During the 12 years, he withdrew $3,000 end of year three, $5,000 end of year seven, and he deposited $11,000 end of year nine. Compute the last two payments
A person wants to buy a piece of land after 12 years. The current price of the land is $300,000. Inflation rate is 4%. He wants to save by making semiannual deposits at an interest rate of 14%. Compute the amount of the payments. During the 12 years, he withdrew $3,000 end of year three, $5,000 end of year seven, and he deposited $11,000 end of year nine. Compute the last two payments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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. A person wants to buy a piece of land after 12 years. The current price of the land is $300,000. Inflation rate is 4%. He wants to save by making semiannual deposits at an interest rate of 14%.
- Compute the amount of the payments.
- During the 12 years, he withdrew $3,000 end of year three, $5,000 end of year seven, and he deposited $11,000 end of year nine.
Compute the last two payments
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