At the end of every year an investor pays £2,000 towards additional voluntary contributions to build up private pension fund. The investor intends to retire in 30 years and wants the pension fund to contain t least £100,000 at the date of retirement. What is the annual effective rate at which the contributions hould accumulate? (Perform a few steps of both the bisection method and the interpolation method with suitable starting values)
At the end of every year an investor pays £2,000 towards additional voluntary contributions to build up private pension fund. The investor intends to retire in 30 years and wants the pension fund to contain t least £100,000 at the date of retirement. What is the annual effective rate at which the contributions hould accumulate? (Perform a few steps of both the bisection method and the interpolation method with suitable starting values)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 32P
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can you please show me how to form the equation of value here , using the bisection method
![1. * At the end of every year an investor pays £2,000 towards additional voluntary contributions to build up
a private pension fund. The investor intends to retire in 30 years and wants the pension fund to contain
at least £100,000 at the date of retirement. What is the annual effective rate at which the contributions
should accumulate? (Perform a few steps of both the bisection method and the interpolation method
with suitable starting values)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4061eb31-6ba2-4539-9b51-dd7b05481e7e%2Ff10609be-76a4-47db-bb49-e485c79ad452%2Feabjusb_processed.png&w=3840&q=75)
Transcribed Image Text:1. * At the end of every year an investor pays £2,000 towards additional voluntary contributions to build up
a private pension fund. The investor intends to retire in 30 years and wants the pension fund to contain
at least £100,000 at the date of retirement. What is the annual effective rate at which the contributions
should accumulate? (Perform a few steps of both the bisection method and the interpolation method
with suitable starting values)
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