SOLUTION: Hi,
I'd appreciate some help with these questions please.
7. Derek is saving for his daughter’s wedding in 2 years time. He decides to save either
(a) €150 a month starting at
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-> SOLUTION: Hi,
I'd appreciate some help with these questions please.
7. Derek is saving for his daughter’s wedding in 2 years time. He decides to save either
(a) €150 a month starting at
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Question 713813: Hi,
I'd appreciate some help with these questions please.
7. Derek is saving for his daughter’s wedding in 2 years time. He decides to save either
(a) €150 a month starting at the end of the current month at a nominal rate of 6% a year compounded monthly or
(b) €460 a quarter starting at the end of the current month at a nominal rate of 6% a year compounded quarterly
I've used the formula m((1+i)^t-1)/i my answer to part (a) matches the sample answer given but my answer to paer (b) doesn't.
Answers given: (a) €3814.79 (b) 3794.78)
Regards
Brian Answer by solver91311(24713) (Show Source):
My answer for part b is $3879.11. Maybe your given answer for b) is a misprint. Interestingly enough, $3794.78 is the FV of $450 per quarter for 8 quarters at 6% per annum compounded quarterly.
John
Egw to Beta kai to Sigma
My calculator said it, I believe it, that settles it
