Investing that $120,000 in a saving account for 15 years. There are two banks forher choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank Bpays a rate of return of 8.45 annually, compounding quarterly.Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the endof each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate ofreturn 7% per year, compounding monthly.Required:Calculate the monthly payment Molly needs to contribute into ANZ Investment Fund to get$330,000 after 15 years in Investment 2?
Investing that $120,000 in a saving account for 15 years. There are two banks forher choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank Bpays a rate of return of 8.45 annually, compounding quarterly.Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the endof each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate ofreturn 7% per year, compounding monthly.Required:Calculate the monthly payment Molly needs to contribute into ANZ Investment Fund to get$330,000 after 15 years in Investment 2?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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Investing that $120,000 in a saving account for 15 years. There are two banks for
her choice. Bank A pays a
pays a rate of return of 8.45 annually, compounding quarterly.
Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end
of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of
return 7% per year, compounding monthly.
Required:
Calculate the monthly payment Molly needs to contribute into ANZ Investment Fund to get
$330,000 after 15 years in Investment 2?
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