An individual invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels: £1511 per annum for the first 8 years followed by £1971 per annum until the end of year 22 (inclusive). Assuming a nominal rate of interest of 6% pa convertible quarterly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=31 years (correct answer = 133570.39, using formulas no tables)
An individual invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels: £1511 per annum for the first 8 years followed by £1971 per annum until the end of year 22 (inclusive). Assuming a nominal rate of interest of 6% pa convertible quarterly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=31 years (correct answer = 133570.39, using formulas no tables)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An individual invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels:
£1511 per annum for the first 8 years followed by
£1971 per annum until the end of year 22 (inclusive).
Assuming a nominal rate of interest of 6% pa convertible quarterly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=31 years (correct answer = 133570.39, using formulas no tables)
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