4. Marla deposits money into an account at the end of each quarter for 10 years....
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4. Marla deposits money into an account at the end of each quarter for 10 years. Her first deposit is 100 and each subsequent deposit is 20 more than the previous deposit. Assuming a quarterly effective rate of 2%, how much money does Marla have at the end of 10 years? If she wishes to use these accumulated funds to purchase a level annual perpetuity what will the annual payment from the perpetuity be, if we assume an annual effective interest rate of 5% for the perpetuity? Assume that the first payment from the perpetuity occurs exactly one year after purchase. 4. Marla deposits money into an account at the end of each quarter for 10 years. Her first deposit is 100 and each subsequent deposit is 20 more than the previous deposit. Assuming a quarterly effective rate of 2%, how much money does Marla have at the end of 10 years? If she wishes to use these accumulated funds to purchase a level annual perpetuity what will the annual payment from the perpetuity be, if we assume an annual effective interest rate of 5% for the perpetuity? Assume that the first payment from the perpetuity occurs exactly one year after purchase.
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Related Book For
Business Math
ISBN: 978-0133011203
10th edition
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
Posted Date:
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