What is the value of the fund after 18 years? £ 数字 Enter an answer correct to 2 decimal places.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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An investor is setting up a fund which requires 18 years of contributions. The investor pays £200 per month for 15 years. After 15 years, the payments
increase by £10 for the subsequent 3 years.
All payments are made in arrears, i.e at the end of the period.
The effective annual rate i = 2%.
What is the value of the fund after 18 years?
£ 数字
Enter an answer correct to 2 decimal places.
Transcribed Image Text:An investor is setting up a fund which requires 18 years of contributions. The investor pays £200 per month for 15 years. After 15 years, the payments increase by £10 for the subsequent 3 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 2%. What is the value of the fund after 18 years? £ 数字 Enter an answer correct to 2 decimal places.
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