2013年10月21日星期一

Time payments question... I don't understand the answer...?

investment management software

The question is...


(c) Mr and Mrs Caine each decide to invest some money each year to help pay for

their son’s university education. The parents choose different investment

strategies.


(i) Mr Caine makes 18 yearly contributions of $1000 into an investment

fund. He makes his first contribution on the day his son is born, and his

final contribution on his son’s seventeenth birthday. His investment earns

6% compound interest per annum.

Find the total value of Mr Caine’s investment on his son’s eighteenth

birthday.


(ii) Mrs Caine makes her contributions into another fund. She contributes

$1000 on the day of her son’s birth, and increases her annual

contribution by 6% each year. Her investment also earns 6% compound

interest per annum.


Answer to ii is 3573.05. And i dont understand why or how. Someone please answer.


ONLY II (i put in {i} just in case)


Thankyou!

Time payments question... I don't understand the answer...?

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