2. The accumulated value of a saving account based on regular periodic payments can be determined by the annuity due equation A =[(1 +r)" – 1] A person at the age of 25 start saving RM1000 per month. This person aims to save RM500 000 in 20 years. Approximate the interest rate that would enable him/her to reach that goal in 20 years. Where A = amount in the account at any time , for example at the end of 20 years A=500 000 P = is the amount regularly deposited (monthly deposit) r= rate of interest ( if the bank gives rate of interest 7% per annum, then r = 007) 12 n= number of deposits (the number of month) You may take r, = 6.5% or 0.065 per annum Give your answer accurate to 104
2. The accumulated value of a saving account based on regular periodic payments can be determined by the annuity due equation A =[(1 +r)" – 1] A person at the age of 25 start saving RM1000 per month. This person aims to save RM500 000 in 20 years. Approximate the interest rate that would enable him/her to reach that goal in 20 years. Where A = amount in the account at any time , for example at the end of 20 years A=500 000 P = is the amount regularly deposited (monthly deposit) r= rate of interest ( if the bank gives rate of interest 7% per annum, then r = 007) 12 n= number of deposits (the number of month) You may take r, = 6.5% or 0.065 per annum Give your answer accurate to 104
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![2. The accumulated value of a saving account based on regular periodic payments can
be determined by the annuity due equation
P
A =[(1 + r)" – 1]
A person at the age of 25 start saving RM1000 per month. This person aims to save
RM500 000 in 20 years. Approximate the interest rate that would enable him/her to
reach that goal in 20 years.
Where
A = amount in the account at any time , for example at the end of 20 years
A=500 000
P = is the amount regularly deposited (monthly deposit)
r= rate of interest ( if the bank gives rate of interest 7% per annum, then r=:
0.07
12
n = number of deposits (the number of month)
You may take ro = 6.5% or 0.065 per annum
Give your answer accurate to 104](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49b6be03-7fcf-41be-8144-16f48ede977a%2F007fc06a-6cfc-443c-813c-aa371d36ac26%2Fooa6pvo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. The accumulated value of a saving account based on regular periodic payments can
be determined by the annuity due equation
P
A =[(1 + r)" – 1]
A person at the age of 25 start saving RM1000 per month. This person aims to save
RM500 000 in 20 years. Approximate the interest rate that would enable him/her to
reach that goal in 20 years.
Where
A = amount in the account at any time , for example at the end of 20 years
A=500 000
P = is the amount regularly deposited (monthly deposit)
r= rate of interest ( if the bank gives rate of interest 7% per annum, then r=:
0.07
12
n = number of deposits (the number of month)
You may take ro = 6.5% or 0.065 per annum
Give your answer accurate to 104
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