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SHOW ALL THE CASH FLOW DIAGRAMS A company supervisor went to a bank and borrowed $400,000 with an interest at the rate of 8% compounded
SHOW ALL THE CASH FLOW DIAGRAMS
- A company supervisor went to a bank and borrowed $400,000 with an interest at the rate of 8% compounded semi-annually. To discharge his obligation he agrees to pay a series of 10 equal payments. The first being due at the end of 5 years. Find the semi-annual payment.
- A house owner decided to renovate his property in 7 years where he will be paying $50,000 for the renovation. To prepare for this amount, he set four equal annual payments now. No further payments are made after 4 years. If money is worth 12% per annum, what annual payment is necessary?
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