Homework Answers
Answer:
Series of biennial deposits of starting today.
This is annuity due.
Each period consist of 2 Years
Number of biennial periods = 30/ 2 = 15
Interest rate is 4% continuously compounding
Hence periodic interest rate = e rt - 1 = e (0.04 * 2) - 1 = e 0.08 - 1 = 8.3287067675%
FV = $10,000,000
Amount of deposit = PMT (rate, nper, pv, fv, type) = PMT (8.3287067675%, 15, 0, -10000000, 1)
= $331378.36
Amount of deposit = $331,378.36
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