Question

Calculate the value of each of the followings at the end of month 28. Keep at least 4 significant figures for rates

a. $250 every three years forever, starting at month 9, interest rate is 1% per month.

b. $330 per quarter for 18 quarters, starting at month 7, interest rate is 8% compounded semi-annually.

c. $200 per month for 60 months, starting at quarter 3, grows at 2% per month, interest rate is 18% compounded continuously.

d. $500 every two months forever, starting at the beginning of year 7 and grow at 3% per quarter, interest rate is 16% per year.

Answer 1

1.
=250/(1+1%)^9*1/(1-1/(1+1%)^(12*3))*(1+1%)^28=1003.16262419275

2.
=330/(1+((1+8%/2)^(2/12)-1))^7*(1-1/(1+((1+8%/2)^(2/12)-1))^54)/(1-1/(1+((1+8%/2)^(2/12)-1)))*(1+((1+8%/2)^(2/12)-1))^28=17280.0660103072

3.
=200/(1+(e^(18%/12)-1))^9*(1-(1.02/(1+(e^(18%/12)-1)))^60)/(1-(1.02/(1+(e^(18%/12)-1))))*(1+(e^(18%/12)-1))^28=18449.5612081031

4.
=500/(1+((1+16%)^(1/12)-1))^72*1/(1-((1+(1.03^(1/3)-1))/(1+((1+16%)^(1/12)-1)))^2)*(1+((1+16%)^(1/12)-1))^28=57820.1232624243