Question
Caesar is paid monthly and deposits $250 each pay period into a savings account. Money invested in the savings account earns 5% per year, with
Caesar is paid monthly and deposits $250 each pay period into a savings account. Money invested in the savings account earns 5% per year, with interest compounded monthly. How much would Caesar have at the end of 4 years?
Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is 10.
Daniel deposits $20,000 into an account earning interest at 6% per year compounded quarterly. He wishes to withdraw $400 at the end of each month. For how many months can he make these withdrawals?
Round entry down to the nearest month.
A debtor offers to repay a debt by making a payment of $300 one year from today, $2,700 three years from today, and $4,100 four years from today. The lending agency would rather receive the money in 4 equal end of year payments. Assuming a TVOM of 8%, how much would the debtor need to pay to make these cash flows equivalent?
Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is 2.
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