Question

# You plan to make five deposits of \$1,000 each, one every 6 months, with the first...

1. You plan to make five deposits of \$1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 7% nominal interest, compounded semiannually, how much will be in your account after 3 years? Do not round intermediate calculations. Round your answer to the nearest cent.

2. One year from today you must make a payment of \$6,000. To prepare for this payment, you plan to make two equal quarterly deposits (at the end of Quarters 1 and 2) in a bank that pays 7% nominal interest compounded quarterly. How large must each of the two payments be? Do not round intermediate calculations. Round your answer to the nearest cent.

a) Semi-annual interest rate = 7%/2 = 3.5%

b) First, calculate the PV of the 2 cash flows and then bring that forward one year to equal \$6,000

Quarterly rate = 7%/4 = 0.0175

Can you please upvote? Thank You :-)

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• Required information Many fields of engineering require accurate population estimates. For example, transportation engineers might find...
• Q3. Read the case study below and answer the questions that follow: A leading construction company...
• Discuss the importance of developing healthy eating, sleeping, and exercise habits in during adolescence.Use own words...
• Let G be the graph having 3 vertices A, B and C. There are five edges...
• 1. When \$x thousand is spent on advertising a product, the sales (number of units sold)...
• 1) You are performing a two-tailed test with a sample size of 61. If α=.002α=.002, find...