Question
Consider the following expression for the future value of an annuity. Deposits are made biweekly (26 times per year) starting in January 2016. Dates should
Consider the following expression for the future value of an annuity. Deposits are made biweekly (26 times per year) starting in January 2016. Dates should be given as week 1- 2016, week 2 2016, and so on. 95 + 95(1.001) + ... + 95(1.001)^29 + 95(1.001)^30 a. Describe the annuity. That is, determine how much each deposit is, what the periodic interest rate is, what the nominal rate is, and how many deposits have been made so far. b. What is the full range of calendar dates it took to accumulate the future value above? c. What is the full range of calendar dates that the account will have the future value above? d. What is the date of the deposit corresponding to the expression 95 above? e. What is the date of the deposit corresponding to the expression 95(1.001) above? f. What is the date of the deposit corresponding to the expression 95(1.001)^25 above?
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