INVESTMENTS(LL)W/CONNECT
11th Edition
ISBN: 9781260433920
Author: Bodie
Publisher: McGraw-Hill Publishing Co.
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Question
Chapter 28, Problem 3PS
A
Summary Introduction
To calculate: Final accumulation in account at an age of
Introduction: Final amount will be calculated using return rate. Higher interest rate gives higher returns after a period of time.
B
Summary Introduction
To calculate: Final amount when both rates are equal.
Introduction: When rates are equal, then the total amount will depend on the investment in each class. Higher investment gives the higher returns.
C
Summary Introduction
To calculate: Increment in annual contribution to get 
from fixed fund.
Introduction: For annual amount of 
he should invest 
per year. This amount is decided by the rate and maturity period.
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