Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. do not use excel thank you smith makes quarterly

Do not use excel thank you Smith makes quarterly deposits (at the end of...

60.1K

Verified Solution

Question

Accounting

image

Do not use excel thank you

Smith makes quarterly deposits (at the end of every three months) to a saving account for 15 years. The four deposits in the first year are 2800 each. Deposits are increased by 2% each year, equivalently. Smith deposits 2800(1 +0.02) each in the second year and 2800(1 +0.02) each in the third year, etc. The accumulated amount is used to fund a perpetuity with monthly payments starting one month after the last deposit. The first payment is k and each subsequent monthly payment is 3 dollars more than the previous one. = Suppose the deposit account and the perpetuity have the same rate :(12) = 0.06 (a) What is the accumulated amount after the last deposit? Enter your answer in the blank below. Keep at least 6 decimal places in your calculation. Round your answer to 4 decimal places (b) Determine K, the first payment of the perpetuity

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students