How large must each of the 5 payments be

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You must make a payment of $1,000 in 10 years. To get the money for this payment, you will make 5 equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 5% with quarterly compounding. How large must each of the 5 payments be?

  • $94.20
  • $103.42
  • $137.02
  • $124.72
  • $113.56

Reference no: EM131550559

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