Question

A. At 30 years of age, Erik sets up an IRA account where he plans to...

A. At 30 years of age, Erik sets up an IRA account where he plans to deposit $3,500 at the end of every 6 months until age 65. Find the ending value of the annuity if he invests in a bond fund that has historically yielded 6.5% compounded semiannually.

B. In 5 years, Vincent Hickman will need to replace an assembling machine for his manufacturing plant. It will require a total of $50,000. How much money will he need to deposit in an account at the end of each month if interest accrues at 8.4% compounded monthly?

C. Crystal Cota needs $30,000 in 4 years to buy a new sports car. She opens a savings account because she has bad credit and cannot take out a loan. To reach her goal in 4 years, how much must she deposit into her account at the end of each quarter if she can earn 8% interest compounded quarterly?

Please explain each question please :)

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

I HAVE SOLVED USING BA II PLUS CALCULATOR.

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