Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You would like to have 3500 in 3 years for a special vacation following graduation by making deposits at the end of every six months

image text in transcribed
image text in transcribed

You would like to have 3500 in 3 years for a special vacation following graduation by making deposits at the end of every six months in an annuity that pays 4 compounded semiannually Answer parts a and b i Click the icon to view some finance formulas a How much should you deposit at the end of every six months In order to have 3500 in 3 years you should deposit s at the end of every six months Do not round until the final answer Then round up to the nearest dollar b How much of the 3500 comes from deposits and how much comes from earnings S of the 3500 comes from your deposits and comes from interest Use the answer from part a to find this answer Round to the nearest dollar as needed More info In the provided formulas P is the deposit made at the end of each compounding period for an annuity that pays an annual interest rate r in decimal form compounded n times per year and A is the value of the annuity after t years A 9 r nt auon by mar 1 P A rnt A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Complex Variables

Authors: Francis J Flanigan

1st Edition

0486318486, 9780486318486

More Books

Students also viewed these Mathematics questions

Question

Would you like to work at Kenexa? Why or why not?

Answered: 1 week ago

Question

1. Share your own hobbies, interests, and favorites.

Answered: 1 week ago

Question

Explain why you either support or disapprove of unions.

Answered: 1 week ago