Homework Help: Finance

Posted by Dantavis on Wednesday, April 14, 2010 at 10:01am.

7. Today you open a bank account and make a deposit of $6,000. Then you make the following deposits: in t=1 you deposit $6,500, in t=2 $45,000, in t=3 nothing, in t=4 nothing, in t=5 $7,000, in t=6 $8,700. You made your last deposit of $34,000 in t=7. Then, in t=10, you use all the money in your bank account to buy a financial security that guarantees 25 equal annual payments, with the first payment occurring in t=11. Assuming an annual interest rate of 10%, find the payment amount.

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