in 8 years (a) What amount should he deposit at the end of each quarter at 6% compounded quarterly so that he will hav (b) Find Hector's quarterly deposit if the money is deposited at 5% compounded quarterly (a) If the interest is 6% compounded quarterly, he should deposit Sat the end of each quarter (Round up to the nearest cent) (b) If the interest is 5% compounded quarterly, he should deposit S at the end of each quarter. (Round up to the nearest cent)

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 11PROB
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Please answer both subparts with explanation.

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Hector needs $10,000 in 8 years
(a) What amount should he deposit at the end of each quarter at 6% compounded quarterly so that he will have his S
(b) Find Hector's quarterly deposit if the money is deposited at 5% compounded quarterly
(a) If the interest is 6% compounded quarterly, he should deposit $ at the end of each quarter
(Round up to the nearest cent)
(b) If the interest is 5% compounded quarterly, he should deposit S
at the end of each quarter.
(Round up to the nearest cent.)
Transcribed Image Text:Hector needs $10,000 in 8 years (a) What amount should he deposit at the end of each quarter at 6% compounded quarterly so that he will have his S (b) Find Hector's quarterly deposit if the money is deposited at 5% compounded quarterly (a) If the interest is 6% compounded quarterly, he should deposit $ at the end of each quarter (Round up to the nearest cent) (b) If the interest is 5% compounded quarterly, he should deposit S at the end of each quarter. (Round up to the nearest cent.)
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