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These are Economics/Accounting Questions:How much needs to be deposited at ttt = 0 into a fund paying 4% compounded per period in order to withdraw $3000 at t = 1, $1000 at = 3, and $850 at = 7 so that the fund is depleted at the last withdrawal? (Draw a cash flow diagram
These are Economics/Accounting Questions:How much needs to be deposited at ttt
-
= 0 into a fund paying 4% compounded per period in order to withdraw $3000 at t = 1, $1000 at = 3, and $850 at = 7 so that the fund is depleted at the last withdrawal? (Draw a cash flow diagram.)
- A loan of $2000 is to be paid off in 8 equal annual payments. The interest rate is 4% per year compounded annually. If the first payment is made at EOY 1, what is the annual payment? (Draw a cash flow diagram.)
- For the previous problem, if the first payment is made at EOY 0, what is the annual payment? (Draw a cash flow diagram.)
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