With the following questions, why is 'n' value backwards? #1: Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage...


With the following questions, why is 'n' value backwards?


#1: Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. The first deposit is made on December 31, 2017, and interest is compounded quarterly.


#2: Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $5,000 under each of the following situations.  The first payment is received on December 31, 2019, and interest is compounded quarterly.


Required 1<br>Required 3<br>Required 2<br>Required 4<br>The first deposit is made on December 31, 2017, and interest is compounded quarterly<br>whole dollar amount.)<br>Deposit<br>Date<br>Fund Balance<br>12/31/2021<br>Deposit<br>3%<br>$<br>$<br>12/31/2017<br>16<br>2,000<br>3,209<br>3%<br>12/31/2018<br>12<br>2,000<br>2,852<br>3%<br>12/31/2019<br>2,000<br>2,534<br>12/31/2020<br>3%<br>2,000<br>2,251<br>4<br>10,846<br>Required 2<br>Required 3<br>Required 1<br>The first payment is received on December 31, 2019, and interest is compounded quarterly. (Round your final answers to<br>nearest whole dollar amount.)<br>Deposit<br>Date<br>PV-<br>Deposit<br>12/31/2018<br>$<br>$<br>3%<br>12/31/2019<br>4<br>4,442<br>5,000<br>3%<br>12/31/2020<br>5,000<br>3,947<br>3%<br>12/31/2021<br>12<br>5,000<br>3,507<br>12/31/2022<br>3%<br>16<br>5,000<br>3,116<br>3%<br>20<br>12/31/2023<br>5,000<br>2,768<br>$<br>17,780<br>( SOES<br>

Extracted text: Required 1 Required 3 Required 2 Required 4 The first deposit is made on December 31, 2017, and interest is compounded quarterly whole dollar amount.) Deposit Date Fund Balance 12/31/2021 Deposit 3% $ $ 12/31/2017 16 2,000 3,209 3% 12/31/2018 12 2,000 2,852 3% 12/31/2019 2,000 2,534 12/31/2020 3% 2,000 2,251 4 10,846 Required 2 Required 3 Required 1 The first payment is received on December 31, 2019, and interest is compounded quarterly. (Round your final answers to nearest whole dollar amount.) Deposit Date PV- Deposit 12/31/2018 $ $ 3% 12/31/2019 4 4,442 5,000 3% 12/31/2020 5,000 3,947 3% 12/31/2021 12 5,000 3,507 12/31/2022 3% 16 5,000 3,116 3% 20 12/31/2023 5,000 2,768 $ 17,780 ( SOES

Jun 02, 2022
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