A fund to replace a deteriorating machine will be formed by depositing $2000 at the beginning of each 6 months for 7 years. If the fund accomulates at 7% compounded semi annually; how much is in it (a) at the end of 7 years (b) just after the 8th deposit; (c) just after the last deposit

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A: FV = $1,000,000 r = 5.8% Number of compounding per year (m) = 2 Period (t) = 30 Years

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Q: 1. Bomac Steel sets aside $5000 at the beginning of every six months in a fund to replace equipment.…

A: Compuattion:

Q: Northern Flying Science is preparing to buy an aircraft estimated to cost $600,000 by making equal…

A: a)  Size of the quarterly payment N = 5*4 =20 I/Y = 8/4 = 2 PV =0 FV = -600,000 Compute PMT

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