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Red boxes are wrong answers, thanks! Part a : assume problems 1 & 2 refer to ordinary annuities r n m PMT pv fv 6.0%
Red boxes are wrong answers, thanks!
Part a: assume problems 1 & 2 refer to ordinary annuities | |||||
r | n | m | PMT | pv | fv |
6.0% | 9 | 4 | 800 | 37,820.78 | |
4.4% | 8 | 12 | 950 | 76,760.08 | |
Part b: assume problems 1 & 2 refer to annuities due | |||||
2.9% | 35 | 12 | 525 | (381,472.96) | |
3.3% | 15 | 2 | 640 | (15,048.22) | |
Part c: | |||||
You want to retire at age 65. You plan to save $300 per MONTH starting today, for the 40 years in between. If you can earn 5.25% (APR) over those years on your savings, how much will you have upon retirement? | |||||
5.25% | 40 | 12 | $ 300.00 | Balance = | 488,835.51 |
Part d: | |||||
A bank pays 2.8% interest on savings accounts, offering weekly compounding. What is the Effective Annual Rate (EAR) of these savings accounts? | |||||
2.80% | m=? | 12 | EAR= | $ 300.00 |
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