Radu invests $100,000 in an annuity that earns 6.75% interest compounded quarterly It makes monthly payments over

Fantastic news! We've Found the answer you've been seeking!

Question:

Radu invests $100,000 in an annuity that earns 6.75% interest compounded quarterly It makes monthly payments over 30 years. Answer the following questions. For full marks your answer should be rounded to the nearest cent

a) How much is the final payment?

b) How much is the principal reduced in the final year of the annuity?

c) How much interest is earned the final year of the annuity?

Related Book For answer-question

Mathematical Applications for the Management Life and Social Sciences

ISBN: 978-1305108042

11th edition

Authors: Ronald J. Harshbarger, James J. Reynolds

See More Books

Posted Date: Aug 21, 2020 03:02 AM

See More Questions

An income annuity with quarterly payments earns 6% compounded monthly. What is the value of c? What is the approximate value of the periodic rate of return for one payment interval? Will the correct...
In the near future a company will purchase a manufacturing business for GH315,000, this price to include goodwill (GH150,000), equipment and fittings (GH120,000), and stock of raw materials and...
The input-output table for a two-sector economy is given as follows: Input to Sector X Input to Sector Y Final Demand Total output Output from Sector X 10 25 15 Output from Sector Y 20 30 10 Value...
IKEA was founded in 1943 by a 17-year-old Swede named Ingvar Kamprad. The company, which initially sold pens, Christmas cards, and seeds from a shed on Kamprad?s family farm, eventually grew into a...
The oxidation of a DNA-guanine residue to 8-oxoguanine (8-oxoG) is mutagenic, because 8-oxoG pairs readily with adenine in the next round of replication. Show a pathway beginning with the oxidation...
In the latter part of 2014, New Iberia Company experienced severe financial pressure and was in default of meeting interest payments on long-term notes of $4,500,000 due on December 31, 2019. The...
Show that for the Ho-Lee model the (risk-neutral) standard deviation of the one-period rate is exactly $b_{k} / 2$.
Procter Company owns 90% of the outstanding stock of Silex Company. On January 1, 2011, Silex Company sold land to Procter Company for $350,000. Silex had originally purchased the land on June 30,...
Crown Brewing issued new shares in 2021 but some investors had not paid their capital\ contribution by December 31st, 2021. Hence, Crown Brewing recognizes a contributed capital\ receivable. No other...
Explain why it would be incorrect to calculate the experimental ground-state energy of lithium by taking - (E2s + 2E1s), where E2s is the experimental energy needed to remove the 2s electron from...
6. Suppose that you have a risky asset that provides you with an expected return of 12% per year with 20% volatility (standard deviation). Consider a risk-free asset that provides you with a 3%...
Estimate the amount of work performed on a 1200 kg car as it accelerates at 1.2 m/s2 over a 150 meter distance. How fast will the car be moving at the end if it started from rest?
Gordon is conducting a risk assessment for his organization and determined the amount of damage that flooding is expected to cause to his facilities each year. What metric has Gordon identified?
Beyond inventory, credit policies are the other area of concern. As mentioned previously, J has been paying invoices late, even though doing so incurs a 1% penalty for late payment! Invoices are paid...
What is a controversial business practice of a company sending part or all of its manufacturing operations overseas?
learning contract focus on what the learning goal of could be to gain a comprehensive understanding of the Canadian tax system. This includes learning about the different types of taxes (income tax,...
Melbourne, VIC . The auction property has been passed in and you are negotiating between vendor and the highest bidder but they remain apart with your vendor reluctant to reduce from their reserve,...
Is it a breach of fiduciary duty for a director of a real estate investment trust (REIT) negotiating a joint venture on behalf of the REIT with another director for the development of a portfolio of...
Use a graphing calculator to complete (a) and (b). 1. 2. lim f(x)? lim f(x).
The spread of a highly contagious virus in a high school can be described by the logistic function where x is the number of days after the virus is identified in the school and y is the total number...
If total costs for a product are given by C(x) = 1760 + 8x + 0.6x2 and total revenues are given by R(x) = 100x - 0.4x2, find the break-even quantities?
What other solutions could you see be effective at improving employee motivation and reducing the turnover rate? Why do you believe these solutions would be useful?
Should the whole team have decided on the team members schedule accommodations collectively? Why or why not?
In what ways do you believe providing special work arrangements or accommodations for employees impacts employee motivation? How does it help? How does it hurt?

Radu invests $100,000 in an annuity that earns 6.75% interest compounded quarterly It makes monthly payments over

Question:

Expert Answer:

Mathematical Applications for the Management Life and Social Sciences

Students also viewed these accounting questions