A. borrowed $4497.00 compounded quarterly to help finance her education. She contracted to repay the loan in quarterly payments of $255.00 each. If the payments are due at the end of each 3 months and interest is 8% compounded quarterly, how long will Theresa have to make quarterly payments? State your answer in years and months (from 0 to 11 months). Theresa will have to make payments for -_year(s) and __ B. Pearson sets up a fund to pay $1000 at the end of each month for 9.5 years. Interest on the fund is 3.9% compounded monthly. (a) How much money must be deposited into the fund? (b) How much will be paid out of the fund? (c) How much interest is earned by the fund? Please answer all parts month(s)
A. borrowed $4497.00 compounded quarterly to help finance her education. She contracted to repay the loan in quarterly payments of $255.00 each. If the payments are due at the end of each 3 months and interest is 8% compounded quarterly, how long will Theresa have to make quarterly payments? State your answer in years and months (from 0 to 11 months). Theresa will have to make payments for -_year(s) and __ B. Pearson sets up a fund to pay $1000 at the end of each month for 9.5 years. Interest on the fund is 3.9% compounded monthly. (a) How much money must be deposited into the fund? (b) How much will be paid out of the fund? (c) How much interest is earned by the fund? Please answer all parts month(s)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A. borrowed $4497.00 compounded quarterly
to help finance her education. She contracted
to repay the loan in quarterly payments of
$255.00 each. If the payments are due at the
end of each 3 months and interest is 8%
compounded quarterly, how long will Theresa
have to make quarterly payments? State your
answer in years and months (from 0 to 11
months). Theresa will have to make payments
for _--_year(s) and __---_month(s)
B. Pearson sets up a fund to pay $1000 at the
end of each month for 9.5 years. Interest on
the fund is 3.9% compounded monthly.
(a) How much money must be deposited into
the fund?
(b) How much will be paid out of the fund?
(c) How much interest is earned by the fund?
Please answer all parts
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