Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ten deposits of 100 are made into a fund at two-year intervals with the first deposit at the beginning of the first year. The fund

image text in transcribed

image text in transcribed

Ten deposits of 100 are made into a fund at two-year intervals with the first deposit at the beginning of the first year. The fund earns interest at an annual effective rate of 1.9\% during the first eight years and at an annual effective rate of 3.9% thereafter. Calculate the annual effective yield rate earned over the investment period ending at the end of the 20th year. 3.1% 3.2% 3.3% 3.4% 3.5% To accumulate 50,000 at the end of 3n years, deposits of 620 are made at the end of each of the first n years and 1,000 at the end of each of the next 2n years. The annual effective rate of interest is i. You are given (1+i)n=1.7 Calculate i. 6.29% 6.85% 7.80% 8.16% 9.57%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Housing Finance

Authors: Peter King

2nd Edition

0415432952, 978-0415432955

More Books

Students also viewed these Finance questions