The nominal interest rate is 8% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $5,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made. The amount to be deposited every six months is $. (Round to the nearest dollar.)

The nominal interest rate is 8% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $5,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made. The amount to be deposited every six months is $. (Round to the nearest dollar.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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