On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $105 from her checking account at the end of each month and deposit it into her Christmas Club account, where it will earn 6 7 8% interest. The account comes to term on December 1. (Round your answers to the nearest cent.) (a) Find the present value of the given annuity. $ (b) Interpret the present value of the given annuity. You would have to invest a lump sum of $ now instead of $105 per month.
On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $105 from her checking account at the end of each month and deposit it into her Christmas Club account, where it will earn 6 7 8% interest. The account comes to term on December 1. (Round your answers to the nearest cent.) (a) Find the present value of the given annuity. $ (b) Interpret the present value of the given annuity. You would have to invest a lump sum of $ now instead of $105 per month.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 15E
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On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $105 from her checking account at the end of each month and deposit it into her Christmas Club account, where it will earn
6
%
7 |
8 |
interest. The account comes to term on December 1. (Round your answers to the nearest cent.)
(a) Find the present value of the given annuity.
$
(b) Interpret the present value of the given annuity.
$
(b) Interpret the present value of the given annuity.
You would have to invest a lump sum of $ now instead of $105 per month.
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