Question

1) Paul has deposited $ 1000 in a savings account paying interest at j1= 10% and now finds that his deposit has accumulated to $ 1610.51

1) Paul has deposited $ 1000 in a savings account paying interest at j1= 10% and now finds that his deposit has accumulated to $ 1610.51. if he had been able to invest the $1000 over the same period in a guaranteed investment certificate paying interest at j2 = 13.25% and had deposited this interest in his savings account , to what sum would his $1000 now have accumulated?

2) To prepare for early retirement, a self-employed consultant deposits $5500 into a retirement savings plan each year for 20 years, starting on her 31st birthday. when she is 51, she wishes to draw out 30 equal annual payments. what is the size of each withdrawal, if j1=12%for the first 10-year period,j1=10%for the next 10year period, and j1 =11% for the 30year retirement period?

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