Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. urgent please a person wants to buy a house after

URGENT PLEASE A person wants to buy a house after seven years by making...

70.2K

Verified Solution

Question

Finance

URGENT PLEASE

A person wants to buy a house after seven years by making semiannual deposits of $40,000 in a bank account that pays 10%

1) compute the price of the house

2) three years later, directly after making the sixth payment, the person passed away. His son decided to buy the house on the same day that his father wanted to buy it.

However, he noticed that his fathers payments did not take into consideration the inflation rate of 5% that started three years ago and is expected to continue at the same rate for a long time. The son decided to make annual deposits at the start of each year, starting year four.

COMPUTE the amount of the annual payments that the son has to make in order to be able to buy the house taking into consideration the inflation rate.

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Food science question Q: a small package with a surface area less than 200cm2 needs the following...

Biology
Q

Describe the three sources of loss in the lab preparation of methyl benzoate from benzoic acid. One...

Chemistry
Q

Consider the following special cases of collisions. In all cases, a cart of m1m1 comes in...

Physics
Q

A solid and hollow shaft, connected by a coupling, transmit power. The outside diameters of the...

Mechanical Engineering
Q

A rod AB of length L is non uniformly charged with a linear charge density...

Physics
Q

The following table represents the highest educational attainment of all adult residents in a certain...

Basic Math
Q

please helpppp The periodic inventory records of Hallon Prosithetics indeate the following...

Accounting
Q

Starlight Company has inventory of 8 units at a cost of $200 each on October...

Accounting
Q

2. While the objectives of internal controls differ between a company with a manual accounting...

Accounting
Q

Problem 3: (6.17/224 Silver et.al. (1998) Book) Consider a company facing a demand pattern and...

Accounting
Q

Problem 13-7 Cheyenne Company sells a machine for $6,840 with a 12-month warranty agreement that...

Accounting
Q

You have saved $3,000 for a down payment on a new car. The largest monthly...

Finance