The following table shows the annual effective interest rates credited to an investment fund by calendar...

  

Transcribed Image Text:

The following table shows the annual effective interest rates credited to an investment fund by calendar year of investment. The investment year method applies for the first two years, after which a portfolio rate is used. Calendar year of original investment y 2010 2011 2012 2013 2014 Investment year Portfolio Calendar year of rates % rates portfolio rates i4+2 i 5.4% 6.0% i 5.6% 6.5% 6.3% 6.0% 7.0% 6.3% 7.2% 4.0% 5.0% 5.5% y+2 2012 2013 2014 An investment of $2500 is made at the beginning of 2010 and 2012. Find the total amount of this investment at the end of 2013. The following table shows the annual effective interest rates credited to an investment fund by calendar year of investment. The investment year method applies for the first two years, after which a portfolio rate is used. Calendar year of original investment y 2010 2011 2012 2013 2014 Investment year Portfolio Calendar year of rates % rates portfolio rates i4+2 i 5.4% 6.0% i 5.6% 6.5% 6.3% 6.0% 7.0% 6.3% 7.2% 4.0% 5.0% 5.5% y+2 2012 2013 2014 An investment of $2500 is made at the beginning of 2010 and 2012. Find the total amount of this investment at the end of 2013.

Answer rating: 100% (QA)

The detailed answer for the above question is ... View the full answer