Question
please solve the these question 1) Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account, paying 3.00%
please solve the these question
1) Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account, paying 3.00% compounded semi-annually.
a) How much will she accumulate in 20 years?
b) How much of the accumulated amount is interest?
2) Judy paid for a living room suite over time, signing an installment contract that requires semi-annual payments of $2560.00 for 8.5 years. The first payment is made on the signing date and interest is 14.5% compounded semi-annually. What was the cash price?
3) $6420.00 was invested at a fixed rate of 6.5% compounded semi-annually for 5 years. After 5 years, the fund was converted into an ordinary annuity paying $550.00 per month. If interest on the annuity was 6% compounded monthly, what was the term of the annuity?
4) Calculate the amount of money that needs to be invested today at 7% compounded semi-annually to provide monthly payments of $2000.00 in perpetuity starting:
a) one month from today
b) one year from today
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