1. A series of equal quarterly payments of $2,000 extends over a period of five

Question

1. A series of equal quarterly payments of $2,000 extends over a period of five years. What is the present worth of this quarterly-payment series at 9.75% interest compounded continuously?

2. You receive a credit card application from Sun Bank offering an introductory rate of 2.9% per year compounded monthly for the first six months, increasing thereafter to 17% compounded monthly. This offer is good as long as you transfer your current debt from your existing card. Assuming that you will transfer $3,000 balance and that you will continue to make $100 monthly payment (without making an subsequent purchases), what would be the credit card balance at the end of the first year?

Explanation / Answer

1. A series of equal quarterly payments of $2,000 extends over a period of five

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.