3. 10 years ago you deposited $2500 into a high interest savings account that will always earns 3.55% interest p.a. and that interest compounded monthly. Starting today you want to open a completely separate investment. You figure that at the end of every bi-weekly period you can make $100 deposits until you are ready to retire in 15 years. The annuity pays interest at a rate of 1.28% p.a. compound semi-annually. a) How much total money will you have on the first day of your retirement? b) How much interest did you earn over the life of your investments?

3. 10 years ago you deposited $2500 into a high interest savings account that will always earns 3.55% interest p.a. and that interest compounded monthly. Starting today you want to open a completely separate investment. You figure that at the end of every bi-weekly period you can make $100 deposits until you are ready to retire in 15 years. The annuity pays interest at a rate of 1.28% p.a. compound semi-annually. a) How much total money will you have on the first day of your retirement? b) How much interest did you earn over the life of your investments?

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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