Option 1: Deposit R1000 at the end of each quarter for the first 12 years. At the end of 12 years, make no further deposits, but leave the amount accumulated at the end of 12 years for the next 13 years. Option 2: Do nothing for the first 12 years. Then deposit R6000 at the end of cach year for the next 13 years. If your deposits or investments earn at an interest rate of 6% compounded quarterly, which of the following statement is the most accurate? With Option 2, when compared with Option 1, you will be able to accumulate A. R29 863 more at the end of 25 years from now B. R33 424 more at the end of 25 years from now
Option 1: Deposit R1000 at the end of each quarter for the first 12 years. At the end of 12 years, make no further deposits, but leave the amount accumulated at the end of 12 years for the next 13 years. Option 2: Do nothing for the first 12 years. Then deposit R6000 at the end of cach year for the next 13 years. If your deposits or investments earn at an interest rate of 6% compounded quarterly, which of the following statement is the most accurate? With Option 2, when compared with Option 1, you will be able to accumulate A. R29 863 more at the end of 25 years from now B. R33 424 more at the end of 25 years from now
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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