Calculate the accumulated value at the end of year 22 of the following payments made into a savings plan: £1963 paid at the end of each year for years 2 to 7 and then £839 paid at the beginning of each year for years 14 to 22. Consider that the fund accumulates compoundly at an effective rate of interest of 3.2% pa and there are made no withdrawals from the fund during the term. (correct answer = 29337.15)
Calculate the accumulated value at the end of year 22 of the following payments made into a savings plan: £1963 paid at the end of each year for years 2 to 7 and then £839 paid at the beginning of each year for years 14 to 22. Consider that the fund accumulates compoundly at an effective rate of interest of 3.2% pa and there are made no withdrawals from the fund during the term. (correct answer = 29337.15)
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 value at the end of year 22 of the following payments made into a savings plan:
£1963 paid at the end of each year for years 2 to 7 and then
£839 paid at the beginning of each year for years 14 to 22.
Consider that the fund accumulates compoundly at an effective rate of interest of 3.2% pa and there are made no withdrawals from the fund during the term. (correct answer = 29337.15)
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