Question
A deposit of X is made into a fund that pays an effective annual interest rate of 6% for 10 years. At the same time,
A deposit of X is made into a fund that pays an effective annual interest rate of 6% for 10 years. At the same time, X/2 is deposited in another fund that pays an annual effective discount rate of d for 10 years. The interest amounts earned over the 10 years are the same for both funds.
calculate d.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
Lets begin by finding the future value of the first fund after 10 years We can use the formula for c...
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
