It is now January 1. You plan to make a total of 5 deposits of $300 each, one ev

Question

It is now January 1. You plan to make a total of 5 deposits of $300 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 12% but uses semiannual compounding. You plan to leave the money in the bank for 15 years. How much will be in your account after 15 years? Round your answer to the nearest cent.

You must make a payment of $1,442.83 in 10 years. To get the money for this payment, you will make 5 equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 8% with quarterly compounding. How large must each of the 5 payments be? Round your answer to the nearest cent.

Explanation / Answer

semi annual so 8/2 = 4%

P = 300 ( 1 + 1.04 )

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