× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
Home Q & A Board Science-Related Homework Help Mathematics
New Topic  
gewusel gewusel
wrote...
Posts: 370
Rep: 0 0
6 years ago
A contract worth $59 000.00 provides benefits of $21 000.00 at the end of each year. The benefits are deferred for six years and interest is 8.95% compounded quarterly.
a) How many payments are to be made under the contract?
b) What is the size of the last benefit payment?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
Read 62 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
a)    p =   - 1 = 0.092548902
   FV = 59000.00(1.092548902)6 = 59000.00(1.700768902) = $100 345.37

   n =   
      =   =   = 6.595730861 payments

b)    PVn = 21000   
   = 21000(0.554993627) = $11 654.87

   Final payment = 11654.87(1.092548902) = $12 733.52
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1279 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 48
  
 469
  
 356
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: What's your favorite funny biology word?