Question
An investor pays 80 at the start of each month into a 25-year savings plan. The contributions accumulate at an effective rate of interest
An investor pays 80 at the start of each month into a 25-year savings plan. The contributions accumulate at an effective rate of interest of 3% per half-year for the first 10 years, and at a force of interest of 6% per annum for the final 15 years. Calculate the accumulated amount in the savings plan at the end of 25 years. [6]
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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