# a) A person has set out to deposit $750 per month for 5 years (60 months) into

## Question:

a) A person has set out to deposit $750 per month for 5 years (60 months) into a bank account that pays 1.75% per month interest at the end of each month. What will be the accumulated amount at the end of the five years considering that the bank capitalizes the interest monthly?

b) A person who has $2,250,000 available wants to use it to ensure a fixed monthly income for the next 5 years. For this purpose, you deposit that amount in a bank account that is renewable every 30 days and an interest rate of 12% per year. Assuming that the interest rate remains constant, how much should be withdrawn each month so that at the end of five years the amount initially deposited is completely depleted?

c A company has a debt of $400,000 to be paid in a lump sum within 7 months and wishes to pay in 7 equal monthly payments at the end of the month. What is the value of the monthly payment if the monthly interest rate is 1.25% per month?

d) A company has in its asset portfolio 12 promissory notes of $500 each and with consecutive monthly maturities. The first one expires in a month. The company needs liquidity and plans to sell them to a bank, which has accepted the transaction considering a reference interest rate of 1.5% per month. How much will the company receive if the operation is carried out? In other words, what is the present value of these notes?

e)A company has a debt of $400,000 to be paid in a single installment within 7 months and wishes to pay in 7 equal monthly payments at the beginning of the month. What is the value of the monthly payment if the monthly interest rate is 1.25% per month?

**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill