The nominal interest rate is 8% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $15,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made. The amount to be deposited every six months is $ (Round to the nearest dollar.)

The nominal interest rate is 8% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $15,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made. The amount to be deposited every six months is $ (Round to the nearest dollar.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Answer in 30 minutes please
The nominal interest rate is 14% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $20,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made. The amount to be deposited every six months is $ (Round to the nearest dollar.)
Description At a certain interest rate compounded semi-annually, P5,000 will amount to P20,000 after 10 years. What is the amount at the end of 15 years?
Fill in the table below when P= $10,000, S= $2,000 (at the end of four years), and i= 15% per year. What is the equivalent uniform CR? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15per year. Complete the accompanying table. (Round to the nearest dollar.) Opportunity Cost of Interest (i=15%) $ Year Investment at Beginning of Year $10,000 Loss in Value of Asset During Year $3,000 Capital Recovery Amount for Year
If compounded monthly, a loan will be amounting to ₱132,400 if invested at 11.5%interest for 1.75 years, how much principal will be invested?
K How much money should be deposited annually in a bank account for five years if you wish to withdraw $6,000 each year for three years, beginning five years after the last deposit? The interest rate is 2% per year. Click the icon to view the interest and annuity table for discrete compounding when i=2% per year. The annual deposit amount should equal $ per year. (Round to the nearest dollar.)
You plan to deposit $100 at the end of every quarter (3 months) for 8 years starting at the end of month 3. Then after leaving the money in the account for several years, you plan to withdraw everything 15 years from today. How much is available to withdraw at the end of year 15 if the account pays a nominal annual rate of 8% compounded quarterly (every 3 months)? Question 4 Part C: Provide the final value for withdrawal at the end of year 15. Enter your answer in the form: 12345.67
Compound interest is a very powerful way to save for your retirement. Saving a little and giving it time to grow is often more effective than saving a lot over a short period of time. To illustrate this, suppose your goal is to save $1 million by the age of 70. What amount of money will be saved by socking away $3,038 per year starting at age 23 with a 7% annual interest rate. Will you achieve your goal using the long-term savings plan? What amount of money will be saved by socking away $20,406 per year starting at age 48 at the same interest rate? Will you achieve your goal using the short-term savings plan? Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The future equivalent of the long-term savings plan is $. (Round to the nearest dollar.) C
You borrow $20,000 to purchase a car and will repay the loan in uniform monthly payments for the next 48 months. The first payment is due one month after the purchase of the car. If the interest rate is 1% per month, determine the amount of your monthly car payment. Assuming you make each payment as scheduled, how much total interest will you pay over the four-year period?
You invested $10,000 at 12% interest rate compounded monthly, what is your accumulated amount at the end of year 2?
Compare the interest earned by $10,000 for three years at 9% simple interest with interest earned by the same amount for three years at 9% compounded annually. Why does a difference occur? Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. The simple interest earned is (Round to the nearest dollar.) (Round to the nearest dollar.) The compound interest earned is $ There is a difference in the amount of interest earned because compound interest allows interest from previous years to earn additional interest, whereas simple interest only considers the original principal.
Find the compound amount after 9 years and 3 months on a principal P = $3000, if the rate is 6%, compounded quarterly.