Question
Ryan invests 100,000 in Fund A today which earns an annual effective interest rate of 4.3% interest. The interest on Fund A is paid at
Ryan invests 100,000 in Fund A today which earns an annual effective interest rate of 4.3% interest. The interest on Fund A is paid at the end of each year into Fund B which earns an annual effective interest rate of 5.3%. The interest on Fund B is also paid out at the end of each year into Fund C which earns an annual effective interest rate of 6.3%. At the end of 12 years, Ryan liquidates all three Funds.
How much does Ryan have?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
13th edition
1285198840, 978-1285198842
