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Find the future values of the following ordinary annuities: a. FV of $700 paid each 6 months for 5 years at a nominal rate of
Find the future values of the following ordinary annuities: a. FV of $700 paid each 6 months for 5 years at a nominal rate of 10% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. b. FV of $350 paid each 3 months for 5 years at a nominal rate of 10% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? -Select- Six years from today you need $10,000. You plan to deposit $1,400 annually, with the first payment to be made a year from today, in an account that pays a 10% effective annual rate. Your last deposit, which will occur at the end of Year 6, will be for less than $1,400 if less is needed to reach $10,000. How large will your last payment be? Do not round intermediate calculations. Round your answer to the nearest cent. Simon recently received a credit card with a 21% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $355.12. The minimum payment on the card is only $20 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest whole number. month(s) b. If Simon makes monthly payments of $65, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest whole number. month(s) c. How much more in total payments will Simon make under the $20-a-month plan than under the $65-a-month plan. Do not round intermediate calculations. Round your answer to the nearest cent
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