Answered step by step
Verified Expert Solution
Question
1 Approved Answer
for part(a), you can suppose there will be n payments in the future. Question 2 (6 marks) Suppose you are to deposit funds into a
for part(a), you can suppose there will be n payments in the future.
Question 2 (6 marks) Suppose you are to deposit funds into a savings account at a continuous rate of payment of $100 per year, in perpetuity. The payments will commence in 6 months. Assuming i = 5.5%, calculate each of the following (show all working). (a) The present value now, of all future deposits made. Give your answer to the nearest cent. [2 marks] (b) The present value in exactly 5 years time, of all future payments made from time 6 onwards. Give your answer to the nearest cent. [1 mark] (c) The present value in exactly 100 years time, of all future payments made from time 100 onwards. Give your answer to the nearest cent. [1 mark] as the (d) The accumulated value in the savings account in exactly 30 years time from now. Give your answer to the nearest cent. [2 marks] value in teaving count in curty 30 years is from nowStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started