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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)

Essentials Of Investments
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
Problem 1PS
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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)
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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