2. Joan contributes $4000, AT THE BEGINNING of each quarter, for 10 years to an account that earns 9.2% interest, compounded quarterly. After 10 years, Joan takes out her earnings and puts the total amount of her annuity balance into a common stock that will earn 11% compounded semi-annually. Find the time it will take till the stock is worth $600,000, if she does not put any more money into the stock after the first one-time principal payment. HINT: You will need to use a Log rule to find t.

2. Joan contributes $4000, AT THE BEGINNING of each quarter, for 10 years to an account that earns 9.2% interest, compounded quarterly. After 10 years, Joan takes out her earnings and puts the total amount of her annuity balance into a common stock that will earn 11% compounded semi-annually. Find the time it will take till the stock is worth $600,000, if she does not put any more money into the stock after the first one-time principal payment. HINT: You will need to use a Log rule to find t.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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