Question
Q1) A company deposits $5000 each month into a savings account that earns interest at the rate of 8% per year compounded quarterly for financing
Q1) A company deposits $5000 each month into a savings account that earns interest at the rate of 8% per year compounded quarterly for financing a project at the end of year 10. Use this information to answer the following questions. a) What is the value of K? b) What is the value of C? c) What is the period interest rate? Enter your answer as a percentage rounded to the nearest ten thousandth. For example, if you get 10.23381%, enter 10.2338; if you get 10.2%, enter 10.200; if you get 10.482%, enter 10.482. d) To find the balance at the end of year 10, which of the following is correct? i_k = i with subscript k i_a = i with subscript a F = 5000(F|A, i_k, 12) F = 5000(F|P, i_a, 12) F = 5000(F|A, i_k, 120) F = 5000(F|P, i_a, 120) F = 5000(F|P, i_k, 10) F = 5000(F|P, i_a, 10) F = 5000(F|A, i_k, 4) F = 5000(F|P, i_a, 4) e) What is the balance at the end of year 10? Round to the nearest integer.
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