An investment fund has $7,500 in it today and is receiving contributions of $795 at the beginning of every quarter. If the fund can earn 3.8% compounded semi-annually for the first one-and-a-half years, followed by 4.35% compounded monthly for another one-and-three-quarter years, what will the maturity value of the fund be?

An investment fund has $7,500 in it today and is receiving contributions of $795 at the beginning of every quarter. If the fund can earn 3.8% compounded semi-annually for the first one-and-a-half years, followed by 4.35% compounded monthly for another one-and-three-quarter years, what will the maturity value of the fund be?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

The managers of a pension fund have invested $1.5 million in U.S. government certificates of deposit (CDs) that pay interest at the rate of 3%/year compounded semiannually over a period of 10 years. At the end of this period, how much will the investment be worth?
A family needs to take out a 25-year home mortgage loan of $150,000 through a local bank. Annual interest rates for 25-year mortgages at the bank are 3.6% compounded monthly. (a) Compute the family's monthly mortgage payment under this loan. (b) How much interest will the family pay over the life of the loan?
Consider a retirement savings account where the monthly contribution is $120 for the first 25 years, is increased to $225 for the next 15 years, and then is increased once again to $375 for the last 10 years. The APR is always 6.5% compounded monthly. What is the value of the account at the end of 50 years?
An investment company pays 4%compounded semiannually. You want to have $19,000in the future. (B) How much should you deposit now to have that amount 10 years from now?
Sam Long anticipates he will need approximately $226,900 in 10 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today at an interest rate of 6% compounded semiannually?
A couple deposits $20,000 into an account earning 3.5% annual interest for 15 years. Calculate the future value of the investment if the interest is a) Compounded quarterly; Scesos c fers a COICe int mohly ryears You mine ow mochmney b) Compounded weekly; c) Compouded continously.
Currently, student loans have a payoff time of 25 years at an interest rate of about 7.5% compounded monthly. Suppose the remaining principal of your student loan is $33,760 and the remaining payoff time is 15 years at the 7.5% rate. You recently inherited $40,000 and can't decide if you should pay off your student loan or invest the money in a high yield savings account. Before moving on... Determine the total amount of the loan you will pay back after the remaining 15 years.
Suppose Avary, who works for Nasa, buys a fried chicken franchise in Atlanta with a full price of $858,000. Avary will pay 10% of the full price as a downpayment, and will borrow the rest on a 30-year term loan. The annual rate of interest on the loan is 6%, and is compounded monthly. What will the monthly payment be?