Question
1. (a) you expect to receive ten payments of $650 each. The time interval between payments is three years (as described below). The yearly interest
1. (a) you expect to receive ten payments of $650 each. The time interval between payments is three years (as described below). The yearly interest rate is 8%. What is the present value if: a. the first payment is three years from today and then every three years thereafter. b. the first payment is immediate (that is, tomorrow) and then every three years.
c. The first payment is in one year and then every three years thereafter.
(b) Now suppose you wish to make thirty deposits of $650 into a savings account every three years (as described below). The yearly interest rate is 8%. What is the future value at the time of the last payment if: (i) the first deposit is today and there are 30 payments.
(ii) the first payment is 2 years from today and there are 30 payments
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