March 23, 2017

Post a New Question

Posted by 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 - , Tuesday, November 1, 2011 at 4:32am


  • Finance - , Tuesday, November 1, 2011 at 8:39am

    FV = $3,989,205.95

  • mathematics of financeFM - , Tuesday, November 1, 2011 at 8:49am

    constant ratio

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions

Post a New Question