Mr and Mrs Chong are considering two types of education saving for their children. Saving A requires Mr and Mrs Chong to deposit RM500 at the end of each month and it earns interest of 3% per year compounded monthly. Saving B requires Mr and Mrs Chong to deposit an initial sum of RM50,000 for ten years and it earns interest of 2.5% per year compounded quarterly. How long will it take for Saving A to accumulate the same amount as Saving B?

Mr and Mrs Chong are considering two types of education saving for their children. Saving A requires Mr and Mrs Chong to deposit RM500 at the end of each month and it earns interest of 3% per year compounded monthly. Saving B requires Mr and Mrs Chong to deposit an initial sum of RM50,000 for ten years and it earns interest of 2.5% per year compounded quarterly. How long will it take for Saving A to accumulate the same amount as Saving B?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 13E

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