Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the following table shows the annual effective int

The following table shows the annual effective interest rates credited to an investment fund by...

60.1K

Verified Solution

Question

Finance

The following table shows the annual effective interest rates credited to an investment fund by calendar year of investment. The investment year method applies for the first two years, after which a portfolio rate is used.

imagePlease show detailed steps.

Calendar year Investment year Portfolio Calendar year of of original investment rates % rates portfolio rates 2y+2 y+2 5.4% 5.6% 4.0% 2012 2010 2011 6.0% 6.5% 5.0% 2013 2012 6.3% 6.0% 5.5% 2014 2013 7.0% 6.3% 2014 7.2% An investment of $100 is made at the beginning of 2010 and 2012. Find the total amount of this investment at the end of 2013

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students