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 madeQuestion 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.Answer 1
a) | p = 2/12 - 1 = 0.006558197 |
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