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Q3Abbigail wish to establish a trust fund from which her daughter can withdraw $6,000 every six months for 15 years, when she reach 16 years
Q3Abbigail wish to establish a trust fund from which her daughter can
withdraw $6,000 every six months for 15 years, when she reach 16 years old. At
the end of which time she will receive the remaining money in the trust, which
you would like to be $25,000. The trust will be invested at 6% per annum
compounded semi-annually. How large should the trust be?
Q4It is now January 1, 2018. You plan to make 5 deposits of $200 each, one
every 6 months, with the first payment being made today. If the bank pays a
nominal interest rate of 10%, but uses semi-annual compounding, how much will
be in your account after 8 years?
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