Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank account that pays interest at a nominal rate of 8% compounded quarterly. For the first 10 years the deposits are level at $5000 each year. After the 10 th year, each deposit is 3% more than the year before. A) Give an actuarial expression for the account balance after the final deposit is made ? B) What is the account balance after the final deposit is made ?
Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank account that pays interest at a nominal rate of 8% compounded quarterly. For the first 10 years the deposits are level at $5000 each year. After the 10 th year, each deposit is 3% more than the year before. A) Give an actuarial expression for the account balance after the final deposit is made ? B) What is the account balance after the final deposit is made ?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank
account that pays interest at a nominal rate of 8% compounded quarterly. For the first 10 years the
deposits are level at $5000 each year. After the 10 th year, each deposit is 3% more than the year before.
A) Give an actuarial expression for the account balance after the final deposit is made ?
B) What is the account balance after the final deposit is made ?
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