Question

(4) Annual end-of-year deposits are made to a fund paying an annual effective rate of interest of 6%. The first deposit is $1 ,000 and then they go up by 3% annually. Interest from the 6% account is paid out annually and is reinvested at an annual effective discount rate of 4%. At the end of the thirty years, the funds are liquidated. Find the investor's accumulated value at the time of the liquidation.

Answer 1

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