5. Scott deposits: 1 at the beginning of each quarter in year 1: 2 at the...
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5. Scott deposits: 1 at the beginning of each quarter in year 1: 2 at the beginning of each quarter in year 2; 8 at the beginning of each quarter in year 8: One quarter after the last deposit, Scott withdraws the accumulated value of the fund and uses it to buy a perpetuity-immediate with level payments of X at the end of each year. All calculations assume a nominal interest rate of 10% per annum compounded quarterly. Calculate X. Select one: a. 20.9 b. 19.4 c. 21.4 d. 20.4 e. 19.9 5. Scott deposits: 1 at the beginning of each quarter in year 1: 2 at the beginning of each quarter in year 2; 8 at the beginning of each quarter in year 8: One quarter after the last deposit, Scott withdraws the accumulated value of the fund and uses it to buy a perpetuity-immediate with level payments of X at the end of each year. All calculations assume a nominal interest rate of 10% per annum compounded quarterly. Calculate X. Select one: a. 20.9 b. 19.4 c. 21.4 d. 20.4 e. 19.9
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Answer The correct option is B The per annum rate will be 104 25 Hence the total amount o... View the full answer
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Posted Date:
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