Question
Q1. A series of 10 end-of-year deposits is made that begins with $5,500 at the end of year 1 and decreases at the rate of
Q1. A series of 10 end-of-year deposits is made that begins with $5,500 at the end of year 1 and decreases at the rate of $300 per year with 8% interest.
A. What amount could be withdrawn at t = 10?
B. What uniform annual series of deposits (n = 10) would result in the same accumulated balance at the end of year 10?
Q2. A $80,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 6% less than the previous years return. If money is worth 5%, what is the equivalent present worth for the investment?
Q3.
Suppose you make 30 annual investments in a fund that pays 4% compounded annually. If your first deposit is $10,000 and each successive deposit is 4% greater than the preceding deposit, how much will be in the fund immediately after the 30th deposit?
F = $
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