Question: The table attached represents the data of different payments into a saving account in two years. Use the factor notation process to answer the following
The table attached represents the data of different payments into a saving account in two years. Use the factor notation process to answer the following questions First Year Second Year Payments: $500 per month. Payments: $1000 per quarter. Interest rate: 8% APR compounded monthly Interest rate: 9% APR compounded monthly a) Draw the cash flow diagram using the line below and load appropriately 2 13 14 15 16 17 18 19 20 21 22 23 24 b) Determine the following elements for each interest zone and use the appropriate formula to calculate the effective interest rate for each APR. Zonem): K= N= Zone): K= C= N= a) Compute the present worth of this investment (Pv). The table attached represents the data of different payments into a saving account in two years. Use the factor notation process to answer the following questions First Year Second Year Payments: $500 per month. Payments: $1000 per quarter. Interest rate: 8% APR compounded monthly Interest rate: 9% APR compounded monthly a) Draw the cash flow diagram using the line below and load appropriately 2 13 14 15 16 17 18 19 20 21 22 23 24 b) Determine the following elements for each interest zone and use the appropriate formula to calculate the effective interest rate for each APR. Zonem): K= N= Zone): K= C= N= a) Compute the present worth of this investment (Pv)
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