## [answered] Mary wants to make a deposit on 2/1/2015 to be able to with

5. Mary wants to make a deposit on 2/1/2015 to be able to withdraw \$2,500 at the beginning of each year starting 2/1/2020 for five years. The interest rate is 8 percent.??What is the amount of the deposit that Mary needs to make on 2/1/2015?

6. Determine the market price of a \$1,500,000, 12-year, 9% (pays interest semiannually) bond issue sold to yield an effective rate of 8%. Also, determine the amount of any possible bond premium or discount.

A/c balance required for

withdrawls P?[1-(1?(1+r)^n)]?r Here,

1 Interest rate per annum 8.00% 2 Number of years 5 3 Number of compoundings per

per annum 1 4=

1?3 Interest rate per period ( r)...

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