ou will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

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you will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

Time Value of Money It is now January 1, 2016; and you will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

TIME VALUE oF MONEY It is now January 1, 2016; and you will need $1,000 on Ja 2020, in 4 years. Your bank compounds interest at an 8% annual rate. a. H ow much must you deposit today to have a balance of $1,000 on January 1, 2020? b. If you want to make four equal payments on each January 1 from 2017 through 2020 to accumulate the $1,000, how large must each payment be? (Note that the payments begin a year from today.) c. If your father offers to make the payments calculated in part b ($221.92) or to give you $750 on January 1, 2017 (a year from today), which would you choose? Explain. d. If you have only $750 on January 1, 2017, what interest rate, compounded annually for 3 years, must you earn to have $1,000 on January 1, 2020? e. Suppose you can deposit only $200 each January 1 from 2017 through 2020 (4 years). What interest rate, with annual compounding, must you earn to end up with $1,000 on January 1, 2020? Your father offers to give you $400 on January 1, 2017. You will then make six additional equal payments each 6 months from July 2017 through January 2020. If your bank pays 8% compounded semiannually, how large must each payment be for you to end up with $1,000 on January 1, 2020? What is the EAR, or EFF%, earned on the bank account in part f? what is the APR earned on the account? f. g-

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you will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

you will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

you will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

you will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

you will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

you will need $1,000 on January 1, 2020, in 4 years. Your bank compounds interest at an 8% annual rate.

Best Available Writers