i. Fund X accumulates at an interest rate of 8% compounded quarterly. ii. Fund Y accumulates at an interest rate of 6% compounded semiannuall- iii. At the end of 10 years, the total amount in the two funds combined to $ iv. At the end of 5 years, the amount in Fund X is twice that in Fund Y.

i. Fund X accumulates at an interest rate of 8% compounded quarterly. ii. Fund Y accumulates at an interest rate of 6% compounded semiannuall- iii. At the end of 10 years, the total amount in the two funds combined to $ iv. At the end of 5 years, the amount in Fund X is twice that in Fund Y.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

You are given:
i. Fund X accumulates at an interest rate of 8% compounded quarterly.
ii. Fund Y accumulates at an interest rate of 6% compounded semiannually.
iii. At the end of 10 years, the total amount in the two funds combined to $1000.
iv. At the end of 5 years, the amount in Fund X is twice that in Fund Y.
Calculate the total amount in the two funds at the end of 2 years.

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