3. 10 years ago you deposited $2500 into a high interest savings account that will always earns 3.55% interest p.a. and that interest compounded monthly. Starting today you want to open a completely separate investment. You figure that at the end of every bi-weekly period you can make $100 deposits until you are ready to retire in 15 years. The annuity pays interest at a rate of 1.28% p.a. compound semi-annually. a) How much total money will you have on the first day of your retirement? b) How much interest did you earn over the life of your investments?
3. 10 years ago you deposited $2500 into a high interest savings account that will always earns 3.55% interest p.a. and that interest compounded monthly. Starting today you want to open a completely separate investment. You figure that at the end of every bi-weekly period you can make $100 deposits until you are ready to retire in 15 years. The annuity pays interest at a rate of 1.28% p.a. compound semi-annually. a) How much total money will you have on the first day of your retirement? b) How much interest did you earn over the life of your investments?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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![3. 10 years ago you deposited $2500 into a high interest savings account
that will always earns 3.55% interest p.a. and that interest compounded
monthly. Starting today you want to open a completely separate
investment. You figure that at the end of every bi-weekly period you can
make $100 deposits until you are ready to retire in 15 years. The annuity
pays interest at a rate of 1.28% p.a. compound semi-annually.
a) How much total money will you have on the first day of your
retirement?
b) How much interest did you earn over the life of your investments?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffea582bc-29bc-4e05-af4c-c06727a2b159%2F513246ea-612d-4ec5-9279-92d77d9ea92c%2Ffvd5q8f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. 10 years ago you deposited $2500 into a high interest savings account
that will always earns 3.55% interest p.a. and that interest compounded
monthly. Starting today you want to open a completely separate
investment. You figure that at the end of every bi-weekly period you can
make $100 deposits until you are ready to retire in 15 years. The annuity
pays interest at a rate of 1.28% p.a. compound semi-annually.
a) How much total money will you have on the first day of your
retirement?
b) How much interest did you earn over the life of your investments?
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