investor is setting up a fund which requires 11 years of contributions. The investor pays £200 per month for 5 years. After 5 years, the payments increase by £50 for the subsequent 6 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 11 years?
investor is setting up a fund which requires 11 years of contributions. The investor pays £200 per month for 5 years. After 5 years, the payments increase by £50 for the subsequent 6 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 11 years?
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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An investor is setting up a fund which requires 11 years of contributions. The investor pays £200 per month for 5 years. After 5 years, the payments increase by £50 for the subsequent 6 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 11 years?
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