How much money will the person have at the end of the entire 15 year period In

How much money will the person have at the end of the

This preview shows page 2 - 3 out of 3 pages.

entire proceeds are invested for 10 years at 9% per year, compounded annually. How much money will the person have at the end of the entire 15-year period? -In this problem, it is divided into two which are simple and compound interest problems. First, with an amount 2000, and invested in a simple interest way for 5 years. And, from the amount that grows in 5 years, he invested it again in a compound interest way for 10 years. For 15-year period, the total amount he has from the capital of 2000, in the 15-year mark, he has 7102.09 already.
Image of page 2
5. On the first day of the year, a man deposits 1,000 in a bank at 8% per year compounded annually. He withdraws 80 at the end of the first year, 90 at the end of the second year, and the remaining balance at the end of the third year. What is the net cash flow? -With the same problem in number 1 and 3 but different for what is asked. For 3 periods, the amount he gains for every year with the amount he deposited in day zero. For every year the recorded amount left in the bank due to the amount of money he withdrawn every year aside from year 3 because he withdrawn all the money in the bank. In year 1, he withdrawn gains 80 with the total of 1080 pesos and he withdrawn 80 in the same day. The same from year 2, he gains again the same from year 1 with an amount of 1080, but this time he withdrawn 90. Finally, in year 3 he withdrawn all the money from the bank with a total amount of 1069.2.
Image of page 3

You've reached the end of your free preview.

Want to read all 3 pages?

  • Spring '16
  • prof dumanig
  • 3 years, 2.5%, 5,000 two years, first day of the year

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture