Homework Help: Finance

Posted by Anonymous on Sunday, September 25, 2011 at 6:19pm.

Joseph has just retired and is trying to decide between two retirement income option as to where he would place his life savings. Fund A will pay him quarterly payments for 25years starting at $1000 at the end of the first quarter. Fund A will increase his payments each quarter thereafter by $200 and the last payment will be $20800.
Fund B will pay $1000 at the end of the first quarter and the payments will increase at a constant rate of 18% p.a, compounding quarterly thereafter.
How much will be available in each fund at the end of 25 years if Joseph’s required interest rate is 12% p.a compounded quarterly?

Finance - Eta, Tuesday, November 1, 2011 at 4:32am
none
Finance - Kurik_T, Tuesday, November 1, 2011 at 8:39am
FV = $3,989,205.95
mathematics of financeFM - Kurik_T, Tuesday, November 1, 2011 at 8:49am
constant ratio
FV=$4,157,992.40

Answer this Question

Related Questions

Math HELPPP - In a survey of 2000 adults 50 years and older of whom 40% were ...
corporate finance - 1)You have just turned 30 years old, have just received your...
personal finance - Beverly is planning for her retirement.She has determined ...
Finance - You are now 30 years old. You plan to retire in 30 years, and expect ...
algebra - a salesperson who must decide between two monthly income options: ...
english - this is the assignment can you tell me if i covered what was needed of...
Long term planning - You would like to begin (or increase) your savings for ...
FINANCE - Sir wants to save money to meet 3 goals. He would like to retire 30 ...
Calculus - True or False: Consider the following statement: A differentiable ...
investing - You would like to begin (or increase) your savings for retirement. ...

For Further Reading

First Name:
School Subject:
Answer: