Jane Smart plans to make the following deposits in an account towards cash purchase of a...

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Jane Smart plans to make the following deposits in an account towards cash purchase of a real estate property. $22,000 $22.00

business economics

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Answer 1

Answer #1

A.

R = 8%

Amount in the account after the last deposit = 6000*1.08^4 + 14000*1.08^3 + 22000*1.08^2 + 30000*1.08 + 38000

Amount in the account after the last deposit = $121860

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B.

Equivalent uniform annual deposit = 121860 / ((1.08^5 - 1)/.08)

Equivalent uniform annual deposit = $20772

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Answer 2

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