(6) Assume you could save $1 on September 1st, $2 on September 2nd, $4 on September...

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(6) Assume you could save $1 on September 1st, $2 on September 2nd, $4 on September 3rd, and $8 on the 4th and so on. (a) What is the amount you will save on September 30th? (b) What would be the total amount of your saving during the month of September. (7) What lump sum deposited today at 5% compounded annually for 8 years will provide the same amount as $1000 deposited at the end of each year for 8 years at 6% compounded annually? (8) In his will the late Mr. Jones said that each child in his family could have an annuity of $6000 at the end of each year for 10 years or equivalent present value. If money can be deposited at 10% compounded annually, what the present value? (6) Assume you could save $1 on September 1st, $2 on September 2nd, $4 on September 3rd, and $8 on the 4th and so on. (a) What is the amount you will save on September 30th? (b) What would be the total amount of your saving during the month of September. (7) What lump sum deposited today at 5% compounded annually for 8 years will provide the same amount as $1000 deposited at the end of each year for 8 years at 6% compounded annually? (8) In his will the late Mr. Jones said that each child in his family could have an annuity of $6000 at the end of each year for 10 years or equivalent present value. If money can be deposited at 10% compounded annually, what the present value?

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This is a geometric progression where each day you save double the amount from ... View the full answer