An company needs to make the following annuity payments into a pension fund: £1100 paid at the beginning of each year for the first 5 years and then £1200 paid at the beginning of each year for the next 9 years and then £720 paid at the beginning of each year for the following 7 years. Calculate the amount of capital accumulated in the fund by the end of the last year, given that the rate of interest during this period is: 5.5% pa effective for the first 10 years and then 6.4% pa effective thereafter. NO tables, only formulas, please

An company needs to make the following annuity payments into a pension fund: £1100 paid at the beginning of each year for the first 5 years and then £1200 paid at the beginning of each year for the next 9 years and then £720 paid at the beginning of each year for the following 7 years. Calculate the amount of capital accumulated in the fund by the end of the last year, given that the rate of interest during this period is: 5.5% pa effective for the first 10 years and then 6.4% pa effective thereafter. NO tables, only formulas, please

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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