Determine the interest rate compounded semiannually

Assignment Help Econometrics

Reference no: EM13202336

John is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years. Find the value of (A) which he should deposit every 6 months. Assume the interest rate is 8% compounded semiannually.

Reference no: EM13202336

Questions Cloud

What dimensions will give the largest printed area : A poster is to have an area of 220 in2 with 1 inch margins at the bottom and sides and a 3 inch margin at the top. What dimensions will give the largest printed area? (Give your answers correct to one decimal place.)

What additional measures are available : R2 is misleading when used for time-series analysis. what additional measures are available?

How many students applied to both schools : In a group of 40 students, 25 applied to Columbia and 30 applied to Cornell. If 3 students applied to neither Columbia nor Cornell, how many students applied to both schools?

What cpted strategies would you use for typical high school : What CPTED strategies would you use for a typical high school? Consider the area around the building(s) as well. Be sure to refer to the CPTED principles stated in the lecture notes.

Determine the interest rate compounded semiannually : every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years. Find the value of (A) which he should deposit every 6 months. Assume the interest rate is 8% compounded semiannually.

What is the implied coupon : If the promised payment on the bond is the same as the issue price of $100, what is the implied coupon if effective interest rates are 3.0% and the bond has a 1-year maturity?

Determine the net present value of the cash flow : Determine the Net Present Value of the cash flow at annual interest rates of 15%, 20%, and 30%. At what (interpolated) rate would the NPV become zero What is such a rate called Also, calculate the payback periods

What will be the net future worth at the end of year : What will be the net future worth at the end of year 12 of the following income and expenses at an interest rate of 10% per year: Year Income, $ Expenses, $ 0 15,000 11,000 6 - 12 8,000 4,000 1 - 5 9,000 5,000

Construct cash flow diagrams : At an 8% annual interest rate, what is the present value of the cash flows? To receive full credit you must use 2 arithmetic gradients. Construct cash flow diagrams and show all your work.

User Account

All Pages