A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500 per year. The size of the first deposit made is $ 10,000 and the last one is $ 5,500. If the savings account earns 15% per year, how large must a constant annual deposit be for the same amount of time so that the accumulated amount is the same? Show the flow chart

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A: Given information: Initial investment is $2,500 Interest rate is 7.8% Number of periods is 12 made…

Q: What is the future worth of a series of equal yearly deposits of $6,000 for 6 years in a savings…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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A:

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A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

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A: Formula: Future value = Present value x ( 1 + r )N R = Rate of interest N = Number of years

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A: The present value is the value of the sum received at time 0. It is the current value of the sum…

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A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

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A: As per the honor code, we’ll answer only one question at a time, we have answered the first question…

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A: A concept that implies the future worth of the money is lower than its current value due to several…

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A: A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a…

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A: The amount available 6 years after the last deposit will be the future value of this annuity.

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A: There are various types of Bank Accounts, one of the basic and most commonly used is Saving's…

Q: In the situation where Ahmad are depositing $1,000 per month in a savings account that pays 6…

A: Payment period is the no. of times money is deposited in a year. compounding period is the no. of…

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A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: How much money must initially be deposited in a savings account paying 5% per year, compounded…

A: Formulas:

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A: We will first establish the timelines  We deposit $3,000 for 5 years at an interest of 6%. t0 is…

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A: future value can be calculated from present value using interest rate and given period of savings in…

Q: 1. If you deposit $28,688 annually at the end of every year in a bank account paying 5% annually,…

A:

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Q: Suppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month…

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A: Cash flow diagram is a graphical representation of cash flow series over a period of time. It shows…

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A: Let Present value be $100 So, future value will be = $100 * 8 = $800 Rate = 7.80%

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A: In order to take investment decisions, the investor will look forward for evaluation. The evaluation…

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A: Cash flow diagram is needed.

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A: If interest is computed on the actual loan amount, then it is simple interest. When the interest is…