Question: Using the table from the notes (below) and assuming that an investor deposits 1000 on January 1 , 2007. At January 1 , 2010 ,

Using the table from the notes (below) and assuming that an investor deposits 1000 on January 1, 2007. At January 1, 2010, the accumulated value of the 1000 deposit is:P (under the investment year method)Q (under the portfolio year method)R assuming that the balance is withdrawn at the end of each year and reinvested at the new money rate.Find P, Q and R.

6. Using the table from the notes (below) and assuming that an investor deposits 1000 on January 1, 2007. At January 1, 2010, the accumulated value of the 1000 deposit is: P (under the investment year method) Q (under the portfolio year method) R assuming that the balance is withdrawn at the end of each year and reinvested at the new money rate. Find P, Q and R. Calendar Year of original investment Y i 1 iy 3 iy 5 i y + 5 2002 8.25 8.25 8.40 8.50 8.50 8.35 2003 8.50 8.70 8.75 8.90 8.90 8.25 2004 9.00 9.00 9.10 9.10 8.75 8.50 2005 9.00 9.10 9.25 8.75 8.25 7.75 2006 9.25 9.35 8.75 8.50 8.00 6.75 2007 9.50 8.50 8.00 7.50 7.00 2008 4.00 3.75 3.00 3.00 2009 4.00 3.25 3.00 2010 3.50 3.00 2011 3.00
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
