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Phuc is considering a 10-year savings plan. The plan requires him to make a deposit of $500 at the end of each quarter for
Phuc is considering a 10-year savings plan. The plan requires him to make a deposit of $500 at the end of each quarter for the next 5 years. After that, he will need to make a deposit of $800 at the end of each month for another 5 years. For the first 5 years, the interest rate is 8% per annum, compounded quarterly. For the next 5 years, the interest rate is 8% per annum, compounded monthly. How much should Phuc have in his savings at the end of year 5 under this plan, assuming that the current balance of his savings account is $0 and no withdrawals are made during this 5-year period? (3 marks) How much should Phuc have in his savings at the end of year 10 under this plan, assuming that the current balance of his savings account is $0 and no withdrawals are made during this 10-year period? (3 marks) 69
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