An company invests a series of level payments at the end of each month into a sinking fund, with no withdrawals allowed over a 25-year period, at the following annual levels: £1600 per annum for the first 11 years followed by £2132 per annum until the end of year 20 (inclusive). Assuming a rate of interest of 5.9% pa convertible monthly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=25 years.
An company invests a series of level payments at the end of each month into a sinking fund, with no withdrawals allowed over a 25-year period, at the following annual levels:
£1600 per annum for the first 11 years followed by
£2132 per annum until the end of year 20 (inclusive).
Assuming a rate of interest of 5.9% pa convertible monthly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=25 years.
No tables, only formulas, please
Variables in the question:
£1600 per annum for the first 11 years followed by
£2132 per annum until the end of year 20 (inclusive)
The nominal rate of interest of 5.9% pa convertible monthly throughout the entire period.
Require: Value of this investment at the time of withdrawal of t=25 years
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