Resources

Resources

Bytelearn - cat image with glasses

AI tutor

Welcome to Bytelearn!

Let’s check out your problem:

4 A man pays Rs. 4000 at the end of each year for 5 years. The money is worth
6% compounded quarterly He wants to replace it for a payment at the end of each quarter.

A man pays Rs. $4000$ at the end of each year for $5$ years. The money is worth $6\%$ compounded quarterly. He wants to replace it for a payment at the end of each quarter.

View step-by-step help

View step-by-step help

Finance problems

Full solution

Q. A man pays Rs.

4000

at the end of each year for

5

years. The money is worth

6\%

compounded quarterly. He wants to replace it for a payment at the end of each quarter.

Calculate interest rate per quarter: Calculate the interest rate per quarter. $\newline$ Interest rate per annum = $6\%$ $\newline$ Interest rate per quarter = $6\% / 4 = 1.5\%$
Calculate future value of annuity due: Calculate the future value of an ordinary annuity due to the annual payments. $\newline$ Using the formula for the future value of an ordinary annuity: $FV = P \times \left[(1 + r)^n - 1\right] / r$ $\newline$ Where $P =$ annual payment, $r =$ quarterly interest rate, $n =$ total number of quarters. $\newline$ $P = 4000$ , $r = 0.015$ , $n = 5 \times 4 = 20$ quarters $\newline$ $FV = 4000 \times \left[(1 + 0.015)^{20} - 1\right] / 0.015$ $\newline$ $FV = 4000 \times \left[1.34885 - 1\right] / 0.015$ $\newline$ $FV = 4000 \times 0.34885 / 0.015$ $\newline$ $P =$ $0$

More problems from Finance problems

Question

13 \mathrm{~km}

stretch of road needs repairs. Workers can repair

3 \frac{1}{2} \mathrm{~km}

of road per week.

\newline

How many weeks will it take to repair this stretch of road?

\newline

Posted 3 months ago

Question

Liam opened a savings account and deposited

\$ 6000

. The account earns

5 \%

in interest annually. He makes no further deposits and does not withdraw any money. In

t

\$ 8865

in this account.

\newline

Write an equation in terms of

t

that models the situation.

Posted 3 months ago

Question

Samantha opened a savings account and deposited

\$ 8192

. The account earns

10 \%

in interest annually. She makes no further deposits and does not withdraw any money. In

t

\$ 25,710

in this account.

\newline

Write an equation in terms of

t

that models the situation.

Posted 3 months ago

Question

The graph of a sinusoidal function intersects its midline at

(0,-7)

and then has a minimum point at

\left(\frac{\pi}{4},-9\right)

\newline

Write the formula of the function, where

x

is entered in radians.

\newline

f(x)=

Posted 3 months ago

Question

The following formula is used in economics to find a company's gross profit rate

P

S

is the net sales and

C

is the cost of goods sold.

\newline

P=\frac{S-C}{S}

\newline

Rearrange the formula to highlight the cost of goods sold.

\newline

C=\square

Posted 3 months ago

Question

3 \cdot 5^{0.2 w}=720

\newline

What is the solution of the equation?

\newline

Round your answer, if necessary, to the nearest thousandth.

\newline

w \approx

Posted 3 months ago

Question

18 \cdot 2^{5 t}=261

\newline

What is the solution of the equation?

\newline

Round your answer, if necessary, to the nearest thousandth.

\newline

t \approx

Posted 3 months ago

Question

-4 \cdot 3^{6 w}=-1750

\newline

What is the solution of the equation?

\newline

Round your answer, if necessary, to the nearest thousandth.

\newline

w \approx

Posted 3 months ago

Question

20 \cdot 7^{3 y}=5

\newline

What is the solution of the equation?

\newline

Round your answer, if necessary, to the nearest thousandth.

\newline

y \approx

Posted 3 months ago

Question

10 \cdot 3^{\frac{5 t}{4}}=800

\newline

What is the solution of the equation?

\newline

Round your answer, if necessary, to the nearest thousandth.

\newline

t \approx

Posted 3 months ago