An investor is setting up a fund which requires 18 years of contributions. The investor pays £200 per month for 15 years. After 15 years, the paymentsincrease by £10 for the subsequent 3 years.All payments are made in arrears, i.e at the end of the period.The effective annual rate i = 2%.What is the value of the fund after 18 years?£ 数字Enter an answer correct to 2 decimal places.

We need to break this question into 2 parts. First, we need to determine the FV of $200 per month…

Answered: What is the value of the fund after 18…

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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What is the value of the fund after 18 years? £ 数字 Enter an answer correct to 2 decimal places.