Question
Semi-annual deposits beginning with $500 and increasing by a continuously compounded 20%, are made to a fund paying a nominal 10% year compounded continuously. What
Semi-annual deposits beginning with $500 and increasing by a continuously compounded 20%, are made to a fund paying a nominal 10% year compounded continuously.
What will be the fund amount after 7 years?
What is the present worth equivalent of the total set of deposits?
What is the equal semi-annual equivalent amount of deposits?
Draw cash flow diagrams for each.
Step by Step Solution
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Step: 1
Fund amount after 7 years To calculate the fund amount after 7 years we can use the following formul...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
