In 1635, $10 was invested in an account with average return per annum of 1.75%. In 1790, a donation series of $100 payments is made over the next 50 years to the account, with the 1st pmt made on the 1st day of the year 1790 and 50 pmts made at the end of the year, and with interest being earned at the end of each year. Assume that this money will be placed in the account with original funding of $10 in 1635 and that the entire endowment is invested at the average return per annum of 1.75%. What will the balance be at the quadricentennial?

Answer rating: 100% (QA)

To solve this problem we need to calculate the balance of the account at the end of each year from 1... View the full answer