work, part oon CDT -graded Activity Information Chapter 5 Homework, part 2 -grad

Question

work, part oon CDT -graded Activity Information Chapter 5 Homework, part 2 -graded Assign ment Score: 62.9 Save Submit Assignment for Gradin e Queation 9 of Check My Work Click here to read the eBook: Future Values Click here to read the eBook: Present Values Click here to read the eBook: Semiannual and Other Compounding Periods NONANNUAL COMPOUNDING a. 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 no more deposits. If the arest cent bank pays 4% nominal interest, compounded semiannually, how much will be in your account after 3 years? Round your answer to s 5308.12 b. One year from today you must make a payment of $ 12,000. To prepare for this payment, you plan to make two equai quarterty deposits (at the end of Quarters a and 2) in a bank that pays 4% nominal interest compounded q uarterly. How large must each of the two payments be? Round your answer to the nearest cent Hide Feedback Partially Correct e here to search DOLL

Explanation / Answer

let x be the amount deposited at the end of quater 1 and quater 2 each.

x(1.04)3 + x(1.04)2 = 12000

1.125x + 1.082x = 12000

2.207 x = 12000

x= 5437.25

amount to be deposited at the end of quater1 = $ 5437.25

amount to be deposited at the end of quater2 = $ 5437.25

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