You would like to have $5,000 in 4 years for a special vacation following graduation by making deposits at the end of every six months in an annuity that pays 3.5% compounded semiannually. а. Use one of the formulas below to determine how much you should deposit at the end of every six months. nt 1+ - 1 A A = P = nt b. How much of the $5,000 comes from deposits and how much comes from interest? a. In order to have $5,000 in 4 years, you should deposit $ 588 at the end of every six months. (Do not round until the final answer. Then round up to the nearest dollar.) b. $ of the $5,000 comes from your deposits and $ comes from interest. (Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
You would like to have $5,000 in 4 years for a special vacation following graduation by making deposits at the end of every six months in an annuity that pays 3.5% compounded semiannually. а. Use one of the formulas below to determine how much you should deposit at the end of every six months. nt 1+ - 1 A A = P = nt b. How much of the $5,000 comes from deposits and how much comes from interest? a. In order to have $5,000 in 4 years, you should deposit $ 588 at the end of every six months. (Do not round until the final answer. Then round up to the nearest dollar.) b. $ of the $5,000 comes from your deposits and $ comes from interest. (Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:You would like to have $5,000 in 4 years for a special vacation following graduation by making deposits at the end of every six months in an annuity that pays 3.5%
compounded semiannually.
a.
Use one of the formulas below to determine how much you should deposit at the end of every six months.
nt
P
1+
- 1
A
A =
P =
nt
b.
How much of the $5,000 comes from deposits and how much comes from interest?
....
a. In order to have $5,000 in 4 years, you should deposit $ 588 at the end of every six months.
(Do not round until the final answer. Then round up to the nearest dollar.)
b. $
of the $5,000 comes from your deposits and $
comes from interest.
(Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
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