Sean contributed equal deposits at the end of every month for 2 years into an investment fund. He then decided to stop making payments and left the money in the fund to grow for another 4 years. The fund was earning 3.23% compounded monthly for the entire period and the accumulated amount at the end of the term was $120,000. a. Calculate the amount in the fund at the end of 2 years. 7 Round to the nearest cent b. Calculate the size of the periodic deposits into the fund.
Sean contributed equal deposits at the end of every month for 2 years into an investment fund. He then decided to stop making payments and left the money in the fund to grow for another 4 years. The fund was earning 3.23% compounded monthly for the entire period and the accumulated amount at the end of the term was $120,000. a. Calculate the amount in the fund at the end of 2 years. 7 Round to the nearest cent b. Calculate the size of the periodic deposits into the fund.
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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Transcribed Image Text:Sean contributed equal deposits at the end of every month for 2 years into an
investment fund. He then decided to stop making payments and left the money in the
fund to grow for another 4 years. The fund was earning 3.23% compounded monthly
for the entire period and the accumulated amount at the end of the term was
$120,000.
a. Calculate the amount in the fund at the end of 2 years.
7
Round to the nearest cent
b. Calculate the size of the periodic deposits into the fund.
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