× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
g
3
3
2
J
2
p
2
m
2
h
2
s
2
r
2
d
2
l
2
a
2
Home Q & A Board Science-Related Homework Help Mathematics
New Topic  
gewusel gewusel
wrote...
Posts: 370
Rep: 0 0
6 years ago
Payments of $500.00 are made at the beginning of each month for four years. The interest rate is 4.5% compounded monthly. If no further deposits are made
a) Calculate the accumulated value twelve years after the first deposit.
b) Calculate the amount deposited.
c) Calculate the interest.
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
Read 103 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
a)    Step 1:    PMT = 500; n = 4(12) = 48; i =   = 0.00375; I/Y = 4.5; P/Y = C/Y = 12
   FV(due) = 500  = $26 340.32
   Step 2:    PV = 26340.32; n = 8(12) = 96
   FV = 26340.32(  = $37 728.94

Programmed solution:

b) Amount deposited is 48(500.00) = $24 000.00
c) Interest is 37 728.94 - 24 000.00 = $13 728.94
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1083 People Browsing
 133 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 11763
  
 300
  
 176
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Who's your favorite biologist?