What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in thecash flow diagram if the interest rate is 8% compounded quarterly?0III8% Compounded quarterly1II12II13I1$1,500The amount of the quarterly deposits A should be $4IQuarters5 6 7IIIA(Deposit)II$2,5008II(Round to the nearest dollar.)QL

The objective of the question is to calculate the amount of the quarterly deposits A that will allow…

Answered: What is the amount of the quarterly…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 12% compounded quarterly? 12% Compounded quarterly $2,800 $1,000 2 3 4 5 6 7 mim 1 A (Deposit) Quarters 1 The amount of the quarterly deposits A should be $. (Round to the nearest dollar.) Q
On Juan's twenty-sixth birthday, he invested $7,500 in a retirement account. Each year thereafter, he deposited 8 percent more than the previous deposit. The account paid annual compound interest of 5 percent. If Juan decided to wait 8 years before investing for retirement, how much would he have to invest at Round entry that time to have the same account balance on his sixtieth birthday? $ to the nearest dollar.
Calculate the future value for the following 3 problems Present Value Interest Rate Time (Years) Compounding $6,000 3% 8. Semiannually $8,900 6% 4 Monthly $17,600 12% Quarterly Calculate the present value for the following Future Value = $25,000 Interest = 5% Time = 10 years %3D
Addy plans to deposit her annual bonus into a savings account that pays 4% interest compounded annually. The size of her bonus increases by $1000 each year, and the initial bonus amount she will deposit at the end of year 1 is $2500 a) Determine how much will be in the account immediately after the 6th deposit. b) What's the future value if she only plans to deposit her annual bonus for 8 years C) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8 but also plans to skip the deposits at the end of vears 3 and 6?
John-The-Smart-Investor plans to make uniform deposits every three months into a high yield savings account so that at the end of 8 years, a sum of $8,000 will be saved in the account. If the 8% effective annual interest is compounded quarterly, how much should John deposit at the end of each quarter? Draw the Cash Flow Diagram (CFD) explicitly.
Please do not handwirte on paper. Please type! Thanks Bob and Billy each invest $1,000,000 and $1200, respectively, in their own account with the same interest. a) Who will double their money first? b). If Bob wants to buy a $45,000 car. He is approved by her bank for $38,000 at 3.99% compounded monthly for 72 months. If He buys the car with a loan from her bank, how much does she actually pay for the car at the end of the loan? Excluded taxes and other fees
What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 8% compounded quarterly? 8% Compounded quarterly $1,900 $2.600 Quarters 5 2 3 4 8 (Deposit) The amount of the quarterly deposits should be S. (Round to the nearest dollar.)
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What is the amount of 10 equal annual deposits that can provide five annualwithdrawals, when a first withdrawal of $3,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of 6% per year over the previous year's rate if(a) the interest rate is 8% compounded annually?(b) the interest rate is 6% compounded annually?
Draw cash flow diagram and show your solution A person needs $20,000 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 10 years. The annual interest rate being charged is 10% compounded bimonthly. What is the amount of each payment?
What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram of the interest rate is 8% compounded quarterly The amount of the quarterly deposits A should be (Round to the nearest dollar) 8% Compounded quarterly $2,000 1 2 3 (Deposit) Quarters 5 6 7 $2,800 a
Bright Inc. will be receiving $5,500 at the end of every month for the next 3 years. If these payments were directly invested into a fund earning 5.50% compounded semi-annually, what would be the future value of the fund at the end of 3 years? Round to the nearest cent

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