Accumulate the required amount to buy house of your dream

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Reference no: EM131524842

1. What is the present value of the following annuity?

$3,313 every quarter year at the end of the quarter for the next 13 years, discounted back to the present at 7.83 percent per year, compounded quarterly?

Round the answer to two decimal places.

2. You are considering an investment that has a nominal annual interest rate of 6.08 percent, compounded semiannually. Therefore, the effective annual rate, or EAR (annual percentage yield) is _____.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

3. You plan to buy the house of your dreams in 16 years. You have estimated that the price of the house will be $115,559 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 4.58 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?

Round the answer to two decimal places.

Reference no: EM131524842

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