An company needs to make the following annuity payments into a pension fund: £1100 paid at the beginning of each year for the first 5 years and then £1200 paid at the beginning of each year for the next 9 years and then £720 paid at the beginning of each year for the following 7 years. Calculate the amount of capital accumulated in the fund by the end of the last year, given that the rate of interest during this period is: 5.5% pa effective for the first 10 years and then 6.4% pa effective thereafter. NO tables, only formulas, please
An company needs to make the following
£1100 paid at the beginning of each year for the first 5 years and then
£1200 paid at the beginning of each year for the next 9 years and then
£720 paid at the beginning of each year for the following 7 years.
Calculate the amount of capital accumulated in the fund by the end of the last year, given that the rate of interest during this period is:
5.5% pa effective for the first 10 years and then
6.4% pa effective thereafter.
NO tables, only formulas, please
The FV of an investment refers to the combined worth of the cash flows of the investment at a certain future date assuming that they grow at a fixed rate to that date. It uses the concept of TVM in its calculations and is used by investors to compare potential investments.
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