document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1201630>Question 1201630</A>: <I><SPAN STYLE=\"word-break: break-all;\"> This is Business Math. Please use the financial calculator BAII Plus for this.\r<BR>\n" );
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document.write( "A deposit of $4,200 is made today for a period of five years. For how long can $500 be withdrawn from the account at the end of every three months starting three months after the end of the five year term if the interest is 5.75% compounded quarterly?\r<BR>\n" );
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document.write( "a. What is the annuity worth after the deferral period?<BR>\n" );
document.write( "b. What is the value of N? (Correct to 8 decimal places)<BR>\n" );
document.write( "c. How many payments? (Round n up to the next payment)<BR>\n" );
document.write( "d. The term of the annuity will be ____ years and ______ months. (These answers are both whole numbers, no decimals)\r<BR>\n" );
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document.write( "Hint: as the question deals with quarters months can only be in blocks of 3) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #836119 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=836119\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 4200 deposited today.<BR>\n" );
document.write( "interest rate is 5.75% compounded quarterly = 1.4375% per quarter.<BR>\n" );
document.write( "5 years * 4 quarters per year = 20 quarters.<BR>\n" );
document.write( "the future value at the end of the 5 year investment period is equal to 5587.532134.<BR>\n" );
document.write( "that becomes the present value of the annuity that starts at the end of the 5 year investment period.<BR>\n" );
document.write( "you will be withdrawing 500 at the end of each quarter after that.<BR>\n" );
document.write( "the annuity will be depleted after 12.26943235 quarters.<BR>\n" );
document.write( "the number of payments will be equal to 13 quarterly payments.<BR>\n" );
document.write( "the last quasrterly payment will be for the remaining balance, which will be less than 500.<BR>\n" );
document.write( "excel says the last payment at the end of the 13th quarter will be equal to 135.42 rounded to the nearest penny.<BR>\n" );
document.write( "the term of the 13 payments is equal to 3 years and 3 months.<BR>\n" );
document.write( "this is what it will look like in excel.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2023/041203.jpg\"><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2023/041204.jpg\">\r<BR>\n" );
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document.write( "an online calculator similar to the ti-ba-ii can be found at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>\r<BR>\n" );
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document.write( "the results from using that calculator are shown below.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2023/041205.jpg\">\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2023/041206.jpg\">\r<BR>\n" );
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document.write( "that calculator differs in that it rounds the results to less decimal places than the ti-ba-ii.\r<BR>\n" );
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document.write( "a you can see, the results are very close to what the ti-ba-ii calculated, once you take into account the rounding.\r<BR>\n" );
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document.write( "the first calculation was to find the future value.<BR>\n" );
document.write( "the second calcultion was to find the numbers of quarters the loan required.<BR>\n" );
document.write( "the future value became the present value of the annuity.<BR>\n" );
document.write( " </SPAN>\n" );
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