Question: 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

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R assuming that the balance is withdrawn at the end of each year and reinvested at the new money rate.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deposit is: P (under the investment year method) Q (under the portfolio year method) R assuming that the balance is withdrawn at the end of each year and reinvested at the new money rate.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, Qand R. Calendar Year of original investment Y I 1 I 2 I 3 I 4 i'is Fits 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 . 8.75 2005 2006 2007 2008 2009 2010 2011

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