Andrea plans to make 20 annual deposits of 100 each into a fund in order to...
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Andrea plans to make 20 annual deposits of 100 each into a fund in order to accumulate a target amount of K on the date of the last deposit. If the fund were to earn 5% effective per annum, the accumulated value on the date of the 20th deposit would be equal to her target amount of K. Andrea makes the first 5 deposits of 100. However, the fund earns only 4% effective up to this point. Andrea determines that she would have to increase the amount of the last 15 deposits to X in order to accumulate to the original target of K, assuming that the fund continues to earn only 4% effective. Determine X. а. 108 b. 124 С. 135 d. 116 е. 111 Andrea plans to make 20 annual deposits of 100 each into a fund in order to accumulate a target amount of K on the date of the last deposit. If the fund were to earn 5% effective per annum, the accumulated value on the date of the 20th deposit would be equal to her target amount of K. Andrea makes the first 5 deposits of 100. However, the fund earns only 4% effective up to this point. Andrea determines that she would have to increase the amount of the last 15 deposits to X in order to accumulate to the original target of K, assuming that the fund continues to earn only 4% effective. Determine X. а. 108 b. 124 С. 135 d. 116 е. 111
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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