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Social Science Clinic => Business => Topic started by: AEWBW on Jun 6, 2019

Title: A lease requires payments of $1200.00 at the beginning of every quarter for ten years. If interest ...
Post by: AEWBW on Jun 6, 2019

Question 1

What is the accumulated value after 15 years of monthly deposits of $500.00 earning interest at 8% compounded semi-annually if the deposits are made
a) at the end of each month?
b) at the beginning of each month?

Question 2

A lease requires payments of $1200.00 at the beginning of every quarter for ten years. If interest is 6% compounded monthly, calculate the value of the lease.
Title: A lease requires payments of $1200.00 at the beginning of every quarter for ten years. If interest ...
Post by: Kaytorgator on Jun 6, 2019

Answer 1

a) p = 2/12 - 1 = 0.006558197
FVg (due) = 500 = 500(342.0753463) = $171037.67
b) FVg = 500(342.0753463)(1.006558197) = $172 159.37


Answer 2

PMT = 1200; n = 10(4) = 40; i = = 0.0005; I/Y = 6; P/Y = 4; C/Y = 12; c = = 3
p = (1.005)3 -1 = 0.015075125
PV(due) = 1200(1.015075125) = $36 390.27

Programmed solution:
Title: Re: A lease requires payments of $1200.00 at the beginning of every quarter for ten years. If intere
Post by: Ramz Ramyers on Nov 10, 2023
thanksss