Calculate the accumulated amount at the end of year 16 of the following regular series of payments made into a savings plan: £2400 paid at the end of each year for years 3 to 6 and then £1090 paid at the beginning of each year for years 14 to 16. Consider that the fund accumulates compoundly at an effective rate of interest of 5.7% pa and there are made no withdrawals from the fund during the term.
Calculate the accumulated amount at the end of year 16 of the following regular series of payments made into a savings plan: £2400 paid at the end of each year for years 3 to 6 and then £1090 paid at the beginning of each year for years 14 to 16. Consider that the fund accumulates compoundly at an effective rate of interest of 5.7% pa and there are made no withdrawals from the fund during the term.
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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Calculate the accumulated amount at the end of year 16 of the following regular series of payments made into a savings plan:
£2400 paid at the end of each year for years 3 to 6 and then
£1090 paid at the beginning of each year for years 14 to 16.
Consider that the fund accumulates compoundly at an effective rate of interest of 5.7% pa and there are made no withdrawals from the fund during the term.
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