ART 1 DEFERRED ANNUITY PROBLEM a. Find the quarterly payment for 21 quarters to discharge an obligation of 24,500 if money is worth 4% compounded quarterly and the first payment is due at the end of 2 years and 9 months.

ART 1 DEFERRED ANNUITY PROBLEM a. Find the quarterly payment for 21 quarters to discharge an obligation of 24,500 if money is worth 4% compounded quarterly and the first payment is due at the end of 2 years and 9 months.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 20P

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Question

PART 1 DEFERRED ANNUITY PROBLEM

a. Find the quarterly payment for 21 quarters to discharge an obligation of 24,500 if money is worth 4% compounded quarterly and the first payment is due at the end of 2 years and 9 months.

b. Find the semi-annual payment at the end of every six months, the first payment is due at the end of 7 years and the last at the end of 12 years for a loan of 500,500 if money is worth 3% compounded semi-annually.

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