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FinanceQ&A Librarysolve the following showing all workings in microsoft word It is now January 1, 2018 you plan to make deposits of $500 each, one every 6 months, with the first payment being made today . if the bank pays a nominal interest rate of 12% but uses semi annual compounding, how much will be in your account after 10 years?Billy Dilly started working with bns as a sales rep and is tyring to catch up on having money for retirement. bns offers him a pension plan with an annuity thst is guaranteed to earn 7% interest compounded semi annually he paln to work for 10 years before retiring and would like to draw an income of $90'000 per annum for 15 years. how much must be deposited per annum into his retirement fund to accomplish thisQuestion

Asked Oct 13, 2019

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solve the following showing all workings in microsoft word

It is now January 1, 2018 you plan to make deposits of $500 each, one every 6 months, with the first payment being made today . if the bank pays a nominal interest rate of 12% but uses semi annual compounding, how much will be in your account after 10 years?

Billy Dilly started working with bns as a sales rep and is tyring to catch up on having money for retirement. bns offers him a pension plan with an annuity thst is guaranteed to earn 7% interest compounded semi annually he paln to work for 10 years before retiring and would like to draw an income of $90'000 per annum for 15 years. how much must be deposited per annum into his retirement fund to accomplish this

Step 1

Future value annuity due is a method used to calculate the total amount at the end of a period when payments are made at the beginning of the period. Since, here the first payment of $500 is made today with semi-annual interest rate of 6% (12%/2), we will use future value of annuity due formula as below

Step 2

Putting values in the above equation:

Step 3

**Answer:** There will be $19496.36 in the account at the end o...

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