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You have two streams (A and B) available for investment, they are as follows: Investment stream A: Currently you have $80,000 of savings available for
You have two streams (A and B) available for investment, they are as follows: Investment stream A: Currently you have $80,000 of savings available for investment. There is a 10 years investment project available. If you invest your money in this project, it will go through 4 following phases. At the end of phase 1, 2 and 3 the fund will be rolled over to the next phase for investment. You will receive the final proceeds at the end of phase 4. The investment phases are as follows: Phase 1: In the first 2 years your investment will earn 10% return p.a. as per simple interest method. Phase 2: The following 3 years your investment will earn 12% return p.a. compounding monthly. Phase 3: The following 3 years your investment will earn 8% return p.a. compounding annually. Phase 4: In the final 2 years your investment will earn 10% return p.a. compounding daily. Investment stream B: You are also able to make an additional investment for 5 years. This 5 years period will match with the last 5 years of Investment stream A. In Investment stream B, your investment is $11,000 at the end of each quarter during that 5 years period, which will earn 12% p.a. return compounding quarterly. How much money would you be able to accumulate from stream A and B together at the end of 10 years
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