stment of 100,000 is to be used to make payments of 4,000 at the end of each quarter for as long as possible. If the rate of interest is 5% convertible monthly, find: (a) the number of regular payments the fund will make (b) the size of the smaller final payment if the payment will be made in addition to the last regular payment, (c) the size of the smaller final payment if the payment will be made one quarter after the last regular payment.
stment of 100,000 is to be used to make payments of 4,000 at the end of each quarter for as long as possible. If the rate of interest is 5% convertible monthly, find: (a) the number of regular payments the fund will make (b) the size of the smaller final payment if the payment will be made in addition to the last regular payment, (c) the size of the smaller final payment if the payment will be made one quarter after the last regular payment.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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An investment of 100,000 is to be used to make payments of 4,000 at the end of each quarter for as long as possible. If the rate of interest is 5% convertible monthly, find: (a) the number of regular payments the fund will make (b) the size of the smaller final payment if the payment will be made in addition to the last regular payment, (c) the size of the smaller final payment if the payment will be made one quarter after the last regular payment.
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