It is now January 1. You plan to make 5 deposits of $300 each, one every 6 months, with the first payment being made exactly six months from today. If the bank pays a nominal interest rate of 12% but uses semiannual compounding, how much will be in your account exactly 12 years from today?
You must make a payment of $3,800 exactly 8 years from today. To prepare for this payment, you will make 5 equal deposits into an account that pays a nominal interest rate of 7.6% p.a., with quarterly compounding.If your first deposit is made today (and then you make four additional deposits in each of the next four quarters -that is, a deposit 3 months from today, another 6 months from today and so on), what must each of the 5 payments be for you to exactly achieve your goal?
Senua just borrowed $1 million. The loan requires her to make quarterly payments (i.e., 4 payments per year, or one payment every 3 months)with the first payment due exactly 3 months from today for a total of nine years (i.e., 36 payments in all). If the interest rate on this loan is 6% p.a., but with quarterly compounding, what is Senua’s required quarterly payment?