ART 1 DEFERRED ANNUITY PROBLEM a. Find the quarterly payment for 21 quarters to discharge an obligation of 24,500 if money is worth 4% compounded quarterly and the first payment is due at the end of 2 years and 9 months.
ART 1 DEFERRED ANNUITY PROBLEM a. Find the quarterly payment for 21 quarters to discharge an obligation of 24,500 if money is worth 4% compounded quarterly and the first payment is due at the end of 2 years and 9 months.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PART 1 DEFERRED ANNUITY PROBLEM
a. Find the quarterly payment for 21 quarters to discharge an obligation of 24,500 if money is worth 4% compounded quarterly and the first payment is due at the end of 2 years and 9 months.
b. Find the semi-annual payment at the end of every six months, the first payment is due at the end of 7 years and the last at the end of 12 years for a loan of 500,500 if money is worth 3% compounded semi-annually.
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