Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

both 6 and 7 (8 pts) 6. A couple plans to deposit $12,000 in an investment fund at an effective interest rater, with interest compounded

image text in transcribed

both 6 and 7

(8 pts) 6. A couple plans to deposit $12,000 in an investment fund at an effective interest rater, with interest compounded continuously. If after 8 years the fund has grown to $75,000. Determine re as a percentage. (10 pts) 7. A debt of $65000 due in eight years from now at at an intrest rate of 5.2%, is instead to be paid off in four payments as follows (i) $8000 is paid now, (ii) $ 18000 paid in 3 years, (iii) S 25000 paid in four years, and (iv) final payment is made at the end of six years If the interest rate is compounded quarterly, what would be the final payment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Local Public Finance

Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer

1st Edition

3030674681, 978-3030674687

More Books

Students also viewed these Finance questions

Question

Briefly summarize the three external governance mechanisms.

Answered: 1 week ago