Question
Lara is desired to accumulate a fund. She makes monthly equal payments for 50 times and the deposits earn interest at j4 = 12% but
Lara is desired to accumulate a fund. She makes monthly equal payments for 50 times and the deposits earn interest at j4 = 12% but the interest can only be reinvested to another account at j12 = 9%.
(a) If the balance of the first account right after the 30th deposit is $30000 dollars, what is the size of each deposit?
(b) Follow the previous question, if each deposit is made at the beginning of each month, how much money could Lara raise from this fund at the end of 50 months?
(c) If you are given that each payment is made at the end of each month, and right after that last deposit, the value for the second account (reinvestment account), is $4000, how much money could Lara raise from this fund right after she makes the last deposit?
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