At time t = 0, Sirdar invests $2 000 in a fund earning j4 = 8%...
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At time t = 0, Sirdar invests $2 000 in a fund earning j4 = 8% p.a., but payable annually. He reinvests each interest payment in individual separate funds each earning j4 = 9% p.a., but payable annually. The interest payments from the separate funds are accumulated in a side fund that guarantees an annual effective rate of 7%. Determine the total value of all funds at t = 10. At time t = 0, Sirdar invests $2 000 in a fund earning j4 = 8% p.a., but payable annually. He reinvests each interest payment in individual separate funds each earning j4 = 9% p.a., but payable annually. The interest payments from the separate funds are accumulated in a side fund that guarantees an annual effective rate of 7%. Determine the total value of all funds at t = 10.
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Answer rating: 100% (QA)
To determine the total value of all funds at t 10 we need to consider the initial investment the annual interest payments and the accumulation in the ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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