stment of 100,000 is to be used to make payments of 4,000 at the end of each quarter for as long as possible. If the rate of interest is 5% convertible monthly, find: (a) the number of regular payments the fund will make (b) the size of the smaller final payment if the payment will be made in addition to the last regular payment, (c) the size of the smaller final payment if the payment will be made one quarter after the last regular payment.

stment of 100,000 is to be used to make payments of 4,000 at the end of each quarter for as long as possible. If the rate of interest is 5% convertible monthly, find: (a) the number of regular payments the fund will make (b) the size of the smaller final payment if the payment will be made in addition to the last regular payment, (c) the size of the smaller final payment if the payment will be made one quarter after the last regular payment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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