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5. Assuming making four annual deposits of ($ 1000), and the first payment occurs at the end of the second year, and assuming that the interest rate is (12 percent), what is required is a. The amount of regular fixed payments spanning six years and commencing with the end of the first year, and equivalent to the four innovations b. The amount of increase in regular increasing payments that started at the end of the second year with an amount of ($ 500), and increased for three successive years by a specified amount each year, so that the series of new payments becomes equivalent to the four innovations?

5. Assuming making four annual deposits of ($ 1000), and the first payment occurs at the end of the second year, and assuming that the interest rate is (12 percent), what is required is a. The amount of regular fixed payments spanning six years and commencing with the end of the first year, and equivalent to the four innovations b. The amount of increase in regular increasing payments that started at the end of the second year with an amount of ($ 500), and increased for three successive years by a specified amount each year, so that the series of new payments becomes equivalent to the four innovations?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
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5. Assuming making four annual deposits of ($ 1000), and the first payment occurs at the end of the second year, and assuming that the interest rate is (12 percent), what is required is a. The amount of regular fixed payments spanning six years and commencing with the end of the first year, and equivalent to the four innovations b. The amount of increase in regular increasing payments that started at the end of the second year with an amount of ($ 500), and increased for three successive years by a specified amount each year, so that the series of new payments becomes equivalent to the four innovations?
Transcribed Image Text:5. Assuming making four annual deposits of ($ 1000), and the first payment occurs at the end of the second year, and assuming that the interest rate is (12 percent), what is required is a. The amount of regular fixed payments spanning six years and commencing with the end of the first year, and equivalent to the four innovations b. The amount of increase in regular increasing payments that started at the end of the second year with an amount of ($ 500), and increased for three successive years by a specified amount each year, so that the series of new payments becomes equivalent to the four innovations?
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