Question: Please ignore the first question that i posted it. it was by a mistake. I need help only for this question. Thanks! I need help
You need $28.974 at the end of 10 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year a. What single payment could be made at the beginning of the first year to achieve this objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Single payment made b. What amount could you pay at the end of each year annually for 10 years to achieve this same objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Amount to be paid Your uncle borrows $60,000 from the bank at 10 percent interest over the seven-year life of the loan a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Annual payments b. How much of his first payment will be applied to interest? To principal? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) First Payment interest Pindal c. How much of his second payment will be applied to each? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Second Payment Interest Principal
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
