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You want to receive $525 at the end of each month for 2 years. Interest is 7.8% compounded monthly. (a) How much would you have to deposit at the beginning of the 2-year period? (b) How much of what you receive will be interest? (a) The deposit is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

You want to receive $525 at the end of each month for 2 years. Interest is 7.8% compounded monthly. (a) How much would you have to deposit at the beginning of the 2-year period? (b) How much of what you receive will be interest? (a) The deposit is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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You want to receive $525 at the end of each month for 2 years. Interest is 7.8% compounded monthly. (a) How much would you have to deposit at the beginning of the 2-year period? (b) How much of what you receive will be interest? CFAF (a) The deposit is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Transcribed Image Text:You want to receive $525 at the end of each month for 2 years. Interest is 7.8% compounded monthly. (a) How much would you have to deposit at the beginning of the 2-year period? (b) How much of what you receive will be interest? CFAF (a) The deposit is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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