Finance problems

P5-36 Changing compounding frequency. Using annual, semiannual, and quarterly compounding periods for each of the following, (1) Calculate the future value if $5000 is depositing initially and (2) determine the effective annual rate (EAR). a. at 12% annual interest for 5 years. b. at 16% annual interest for 6 years. c. at 20% annual interest for 10 years. P5-43 Creating a retirement fund. To Supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate $220,000 by the end of 42 years from today. You plan to make equal, annual, end of the year deposits into an account paying 8% annual interest. a. How long must the annual deposits be to create the $220,000 fund by the end of 42 years? b. If you can afford to deposit only $600 per year into the account, how much will you have accumulated by the end of the 42 year? P5-48 Loan amortization schedule. Joan Messineo borrowed $15,000 at 14% annual rate of interest to be repaid over 3 years. The loan amoritized into 3 equal , annual, end of the year payments. a. Calculate the annual, end of the year loan payment. b. Prepare the loan amortization schedule showing interest and principal breakdown of each of the 3 loan payments. c. Explain why the interest portion of each payment declines with the passage of time. Show all work.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now