2. An investor is setting up a fund which requires 20 years of contributions. The investor pays £100 per month for 20 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 7%.

2. An investor is setting up a fund which requires 20 years of contributions. The investor pays £100 per month for 20 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 7%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 9RE

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Question

2. An investor is setting up a fund which requires 20 years of contributions. The investor pays £100 per month for 20 years. All payments are made in arrears,
i.e at the end of the period.
The effective annual rate i = 7%.
What is the value of the fund after 20 years?
£ 数字
Enter an answer correct to 2 decimal places.

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