Question

ASAP PLEASE

Q4. A travel agency must replace its computers every five years at a cost of $50000. At a rate of 6% interest calculate (a) The total size of the fund if $500 is deposited at the beginning of each month. (3 marks)

Answer 1

o Note: falore values of orehony amarily is gruen by MT ^ [ C (1+) -1 X m where FV Future value A 7 interest rate m periodic payment of onclinary annuity = number a pericols based on compounding Number of years © To the question of guen nate = 6% { in %} freque.cy) T: is nterest Or û 6 100 here and A= $500 T syears

at month M = 12 IMT 6)m? (a) total dlage of fund of $500 Ps deposited at the begning of eving month = ? the dince $500 is $500 is depratiling begnning of every >> FV = A [ et min 500 [ (internet ] =$34885.01525 Total Size of fund quenter by deposited deposited = m = 4 langet = $ 50000 is the future value we need to find the V m 0 100x12 (6) pertoclic payment FU MT A

4X5 50000 = A (14 6 ( 14 니, 100X4 6 10084 on A 50000 20 (146 100X4 | 6 400 $ 2162-286794 the quarterly dize of deposit srequired to meet the farget
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