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The following table shows the annual effective interest rates credited to an investment fund by calendar year of investment. The investment year method applies for
The following table shows the annual effective interest rates credited to an investment fund by calendar year of investment. The investment year method applies for the first two years, after which a portfolio rate is used.
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Calendar year Investment year Portfolio Calendar year of of original investment rates % rates portfolio rates 2y+2 y+2 5.4% 5.6% 4.0% 2012 2010 2011 6.0% 6.5% 5.0% 2013 2012 6.3% 6.0% 5.5% 2014 2013 7.0% 6.3% 2014 7.2% An investment of $100 is made at the beginning of 2010 and 2012. Find the total amount of this investment at the end of 2013Step by Step Solution
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