Reference no: EM133982908

Problem

What will the annual payments be for an ordinary annuity for 10 years with a PV of $1,000 if the interest rate is 8%? What will the payments be if this is an annuity due? Three banks offer nominal rates of 6% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly and E pays daily. What effective annual rate does each bank pay if you deposit $1,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years?  If all of the banks are insured by the government (the FDIC) and you are equally risky, why do the equity able to attract funds? Find out and the TVA is an agency consideration, what rational made it will cause all the banks to provide the same effective annual rate as Bank AP? Get the instant assignment help. Suppose you don't have the $100,000 but need it at the end of 3 years. You make a series of deposits-annually for A, semiannually for B, quarterly for C, and daily for D-into an account that pays 8% interest. How large must the payments be for each bank?