Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. sofia must pay $ 110000 within 2 years. with this

Sofia must pay $ 110000 within 2 years. With this purpose she begins to save $...

80.2K

Verified Solution

Question

Finance

Sofia must pay $ 110000 within 2 years. With thispurpose she begins to save $ 3000 monthly for 18 consecutivemonths, earning 1.6% monthly capitalizable each month during thefirst year and 1.9% monthly capitalizable each month the rest ofthe time. Sofia wants to know how much she will have to deposit atthe end of month 20 earning 1.9% monthly capitalizable each monthto be able to obtain a total amount at 2 years equal to the amountof the debt.

Answer & Explanation Solved by verified expert
3.8 Ratings (553 Votes)
Given information Interest rate for months 112 16 Interest rate for months 1324 19 Deposits at the end of each month for 18 months 3000 Deposit at the end of month 20 x say Payment at the end of 2 years 110000 From the given information the equation can be formed as Future value of all deposits at the end of 2 years Payment at the end of 2 years Future value of all deposits at the end of 2    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Sofia must pay $ 110000 within 2 years. With thispurpose she begins to save $ 3000 monthly for 18 consecutivemonths, earning 1.6% monthly capitalizable each month during thefirst year and 1.9% monthly capitalizable each month the rest ofthe time. Sofia wants to know how much she will have to deposit atthe end of month 20 earning 1.9% monthly capitalizable each monthto be able to obtain a total amount at 2 years equal to the amountof the debt.

Other questions asked by students

Q

Two ships leave the same port at noon. Ship A sails north at 14 mph, and...

Basic Math
Q

You are interested in finding a 90% confidence interval for the average number of days of...

Statistics
Q

For the reaction A+B+C→D+EA+B+C→D+E, the initial reaction rate was measured for various initial concentrations of reactants....

Chemistry
Q

What makes Nyabinghi drumming and chanting an ideal musical expression for Rastafarianism

Psychology
Q

Gabe and Dana are married and file jointly. For 2019, Gabe earned $150,000 and Dana earned...

Accounting
Q

3P P P B A C 3V V Al mole of ideal gas initially at...

Physics
Q

3 In a closed organ pipe the first resonance occurs at 25 cm at what...

Physics
Q

A bowling ball has a mass of 5 6 kg and a radius of 26...

Physics
Q

For each statistic parameter pair below calculate the sampling error Suppose a population has a...

Statistics
Q

If P (A)=0.55, P (B)=0.6, and P (A and B)=0.4, find P (A or B).

Statistics
Q

The adjusted trial balance data given below is from the Morgan Company's worksheet for the...

Accounting
Q

What concepts have you learned in this managerial accounting course? Specifically, how can you use...

Accounting