Question
An investment of $1400 is to be used to make payments of $250 at the end of every year for as long as possible. If
An investment of $1400 is to be used to make payments of $250 at the end of every year for as long as possible. If the fund earns an annual effective rate of interest of 8% , (A) Find how many regular payments of $250 can be made. (B) Find the amount of the smaller payment to be paid on the date of the last regular payment. Round your answer to two decimal places. (C) Find the amount of the drop payment. Round your answer to two decimal places. (D) Find the amount of the smaller payment that coincides with the fractional time after the last full payment was made. Round your answer to two decimal places.
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