1. Mae is due to make a payment of $1400 now. Instead, she has negotiated two equal payments, one year and two years fro
Posted: Thu Jul 07, 2022 2:19 pm
1. Mae is due to make a payment of $1400 now. Instead, she hasnegotiated two equal payments, one year and two years from now.Determine the size of the equal payments if money is worth 8%compounded quarterly
2. Mr. and Mrs. Nguyen’s property taxes, amounting to$3650, are due on July 1. What amount should the city accept if thetaxes are paid eight months in advance and the city can earn 3.6%compounded monthly on surplus funds?
3. If an investment can earn 4% compounded monthly, whatamount must you invest now in order to accumulate $18,000 after 3 ½years?
4. Jean-Guy Renoir wanted to leave some money to hisgrandchildren in his will. He decided that they should each receivethe same amount of money when they each turn 21. When he died, hisgrandchildren were 19, 16, and 13 years old. How much will theyeach receive when they turn 21 if Jean-Guy left a lump sum of $50000 to be shared among them equally? Assume the interest rate willremain at 5.75% p.a. compounded semi-annually from the time ofJean-Guy’s death until the youngest grandchild turns 21.
5. Debt payments of $500 due seven months ago, $1,000 duetoday, and $2,000 due in nineteen months are to be combined intoone payment due ten months from today at 12% p.a. compoundedmonthly. Find the size of that payment.
2. Mr. and Mrs. Nguyen’s property taxes, amounting to$3650, are due on July 1. What amount should the city accept if thetaxes are paid eight months in advance and the city can earn 3.6%compounded monthly on surplus funds?
3. If an investment can earn 4% compounded monthly, whatamount must you invest now in order to accumulate $18,000 after 3 ½years?
4. Jean-Guy Renoir wanted to leave some money to hisgrandchildren in his will. He decided that they should each receivethe same amount of money when they each turn 21. When he died, hisgrandchildren were 19, 16, and 13 years old. How much will theyeach receive when they turn 21 if Jean-Guy left a lump sum of $50000 to be shared among them equally? Assume the interest rate willremain at 5.75% p.a. compounded semi-annually from the time ofJean-Guy’s death until the youngest grandchild turns 21.
5. Debt payments of $500 due seven months ago, $1,000 duetoday, and $2,000 due in nineteen months are to be combined intoone payment due ten months from today at 12% p.a. compoundedmonthly. Find the size of that payment.