Answer to Question #138145 in Finance for CH Tan

Question #138145
Angeline wishes to make six annual deposits in the amounts of $1,000, $2,000, $3,000,
$4,000, $5,000 and $6,000, in that order, into a fund that pays interest at rate of 5% per
annum. Determine the value of amount today if
i) the interest is compounded annually
ii) the interest is compounded quarterly.
1
Expert's answer
2020-10-15T03:00:56-0400

solution


Part i)


Compounding per annum


Rate

Present value




answer: the present value is $ 17,044.74


Part ii)


Compounding quarterly




answer: the present value is $ 26,116.03

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