Over the next 15 years, you plan to make the following investments:

$500 at the end of every two weeks for the first 6 years;

$1000 at the end of every month thereafter.
The effective interest rates for the next 15 years are: 6% for the first 8 years and 6.25% thereafter.

1. Calculate the present value, today, of the planned investments. (20 points)

2. Calculate the amount to be accumulated, after 15 years, from the planned investments. (10 points)

Answer rating: 100% (QA)

To calculate the present value and the accumulated amount after 15 years from the planned investments we will use the present value and future value f... View the full answer