Two sisters, Joan and Jocelyn decided to save money in funds that earns 14% compounded annually but on different ways. Joan decided to save by making year end deposit of 10,000.00 pesos on the first year, 11,000.00 pesos on the second year, and 12,100.00 pesos on the third year, and so increasing the next year's deposit by 10% in the preceding year until the end of the 10th year. Jocelyn decided to save by just making an equal deposit of 14,000 pesos annually for 10 years. Who has more savings at the end of 10 years?
Two sisters, Joan and Jocelyn decided to save money in funds that earns 14% compounded annually but on different ways. Joan decided to save by making year end deposit of 10,000.00 pesos on the first year, 11,000.00 pesos on the second year, and 12,100.00 pesos on the third year, and so increasing the next year's deposit by 10% in the preceding year until the end of the 10th year. Jocelyn decided to save by just making an equal deposit of 14,000 pesos annually for 10 years. Who has more savings at the end of 10 years?
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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Two sisters, Joan and Jocelyn decided to save money in funds that earns 14% compounded annually but on different ways. Joan decided to save by making year end deposit of 10,000.00 pesos on the first year, 11,000.00 pesos on the second year, and 12,100.00 pesos on the third year, and so increasing the next year's deposit by 10% in the preceding year until the end of the 10th year. Jocelyn decided to save by just making an equal deposit of 14,000 pesos annually for 10 years. Who has more savings at the end of 10 years?
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