Question
In: Statistics and Probability
Jake deposits 5000 at the end of each year in an investment fund earning an annual...
Jake deposits 5000 at the end of each year in an investment fund
earning an annual effective interest rate of 11.6%. The interest
from this investment fund is paid at the end of each year into a
savings account which earns an annual effective interest rate of
2.1%.
Find Jake's combined total accumulated value at the end of 16
years.
Solutions
Expert Solution
Solution:
Jake deposits at the end of each year is ,R = 5000
Effective interest rate , i = 11.6% = 0.116
Total amount to be accumulated after 16 years is .
Amount accumulated after 1st year is
Interest earned in 1st year
Earned interest deposited in savings account with interest rate of 2,1 %
i = 0.021
Total amount accumulated in savings account after 16 years is ,
jakes combined total accumulated value at the end of 16 years is
,
orchestra answered 2 years agoRelated Solutions
Jake deposits 5000 at the end of each year in an investment fund earning an annual...
Jake deposits 5000 at the end of each year in an investment fund
earning an annual effective interest rate of 11.6%. The interest
from this investment fund is paid at the end of each year into a
savings account which earns an annual effective interest rate of
2.1%.
Find Jake's combined total accumulated value at the end of 16
years.
Bob deposits $11000 at the beginning of each year for six years in a fund earning...
Bob deposits $11000 at the beginning of each year for six years
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Bob deposits $1,500 at the beginning of each quarter for sixteen
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