Reference no: EM131348595
During the second year, the fund pays $1,100 on the first day of the second semester and the same amount on the first day of the second semester. A fund will make its parments on the first day of each six-month semester. The first semester starts today and each subsequent semester starts six months after the previous semester begins. During the first year, the fund pays $1,000 on the first day of the first semester and the same amount on the first day of the second semester.
During the second year, the fund pays $1,100 on the first day of the first semester and the same amount on the first day of the second semester.
During the third year, the fund pays $1,200 on the first day of the first semester and the same amount on the first day of the second semester.
This payment patern continues indefinitely. The annual effective interest rate is 5%. Calculate the amount of money you must set aside to fund these payments.
A) 124,500 B) 127,000 C) 129,500 D) 132,000 E)134,500
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Payment patern continues indefinitely
: During the second year, the fund pays $1,100 on the first day of the second semester and the same amount on the first day of the second semester. A fund will make its parments on the first day of each six-month semester. This payment patern continues..
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