An aunty deposits $10,000 into an account earning 2% p.a. pounded quarterly. She wants a total of 20 regular quarterly pay- ments to be made out of the account and into her niece's account at the beginning of each quarter. com- (a) If the first payment is made now then what is the value of the regular payment? Give your answer rounded to the nearest cent. (b) If the first payment is made in two year's time then what is the value of the regular payment? Give your answer rounded to the nearest cent. (c) How many quarters should the payments be deferred to achieve a regular payment of $550 per quarter? Round your answer up to nearest whole quarter.

An aunty deposits $10,000 into an account earning 2% p.a. pounded quarterly. She wants a total of 20 regular quarterly pay- ments to be made out of the account and into her niece's account at the beginning of each quarter. com- (a) If the first payment is made now then what is the value of the regular payment? Give your answer rounded to the nearest cent. (b) If the first payment is made in two year's time then what is the value of the regular payment? Give your answer rounded to the nearest cent. (c) How many quarters should the payments be deferred to achieve a regular payment of $550 per quarter? Round your answer up to nearest whole quarter.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 1E

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