Accumulated sum of stream of payments
Problem:
What is the accumulated sum of the following stream of payments? $21,509 every year at the beginning of the year for 15 years, at 7.84 percent compounded annually. Please illustrate your all work.
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Calculate the effective annual rate or EAR (answer plus units) round 2 decimal places. Explain in detail and please provide all workings.
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What is the present value of these payments at an interest rate of 5.56 percent per year compounded annually? The first payment will be received today. Describe in detail and show your all work.
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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? Explain in detail and illustrate out all workings.
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