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1.A person deposits a certain amount into his deposit account every month with an interest rate of 12%. His accounted is compounded monthly.He has 4000
1.A person deposits a certain amount into his deposit account every month with an interest rate of 12%. His accounted is compounded monthly.He has 4000 USD at the end of 4 years. How much did he deposit monthly into his account? 2.A person deposits 1000 USD into his account now. After 4 years he finds out that he has 2000 USD in his account. What is the compounding period if the yearly interest rate was 12? No numerical calculations are necessary. Show your methodology correctly and step by step. 3.A person who is 25 years old now wants to have 1 million USD when he retires at 65 years old. He deposits 10000 US every year for the next 10 years. How much should he deposit for the until his retirement if the inrest rate is 5%. 4.The formula for the pricing of a bond is: P=Fc(1-1/(1+r)")/r+F/(1+r)" where F is the value,c is the coupon rate, r is the discount rate, and n is the time in years to maturity of the bond. a.Show that P=F is coupon rate is equal to discount rate. b. Show that P>F if the coupon rate is greater than the discount rate
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