A Sum of Money Is Deposited at the Beginning of Each

question 129

Essay

A sum of money is deposited at the beginning of each year for 3 years at 12% compounded annually. After the last deposit interest for the account is to be 8.24% compounded quarterly and the account is to be paid out by payments of $370.00, made at the beginning of each quarter for nine years. What is the size of the annual deposit?

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Definitions:

Contract Right

A legally enforceable claim that derives from a contract, allowing a party to require another party to perform or refrain from performing certain acts.

Obligor

One who owes an obligation to another.

Notice of Assignment

A formal notification given to all the relevant parties involved that a contract has been transferred from one party (the assignor) to another (the assignee).

Discharge Obligation

The act of fulfilling or settling a responsibility, duty, or debt.