Joan contributes $4000, AT THE BEGINNING of each quarter, for 10 years to an account that earns 9.2% interest, compounded quarterly. After 10 years, Joan takes out her earnings and puts the total amount of her annuity balance into a common stock that will earn 11% compounded semi-annually. Find the time it will take till the stock is worth $600,000, if she does not put any more money into the stock after the first one-time principal payment.
Joan contributes $4000, AT THE BEGINNING of each quarter, for 10 years to an account that earns 9.2% interest, compounded quarterly. After 10 years, Joan takes out her earnings and puts the total amount of her annuity balance into a common stock that will earn 11% compounded semi-annually. Find the time it will take till the stock is worth $600,000, if she does not put any more money into the stock after the first one-time principal payment.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Joan contributes $4000, AT THE BEGINNING of each quarter, for 10 years to an account that earns 9.2% interest, compounded quarterly. After 10 years, Joan takes out her earnings and puts the total amount of her annuity balance into a common stock that will earn 11% compounded semi-annually. Find the time it will take till the stock is worth $600,000, if she does not put any more money into the stock after the first one-time principal payment.
HINT: You will need to use a Log rule to find t.
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