Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if the calculation is too time consuming,could you please just write down the formula and some hints .thanks! 8. 1000 is deposited in a fund

image text in transcribed if the calculation is too time consuming,could you please just write down the formula and some hints .thanks!

8. 1000 is deposited in a fund A which earns an effective annual rate of 5%. At the end of each year, the interest earned plus an additional 50 are withdrawn and placed into a fund B which earns an effective annual rate of 9%. At the date when fund A is depleted, the accumulated value in fund B is used to buy a perpetuity which pays X every six months, the first payment issued 18 months after fund A is depleted the effective annual rate of the perpetuity account is 7%. Find X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance After 50 For Dummies

Authors: Eric Tyson

3rd Edition

978-1119724186

More Books

Students also viewed these Finance questions

Question

What do these voices tell you?

Answered: 1 week ago