Results 1 to 4 of 4

Thread: Looking for Help

  1. #1

    Looking for Help

    A trust fund will start to pay you $15200 per year at the start of each year once you turn 18. The prevailing interest rate is 8.79% compounded annually. For how long can you receive payments if you are celebrating your 14th birthday today and the current value of your trust fund is $111345?

  2. #2
    Elite Member
    Join Date
    Feb 2004
    Location
    Ottawa, Ontario
    Posts
    16,801
    You posted 4 problems; all 4 are fairly basic in the financial math world.
    You have showed no work, therefore we don't know where you're stuck.
    If you're looking for solutions, the answer is a resounding NO.
    Please read "read before posting", then act accordingly.
    I'm just an imagination of your figment !

  3. #3
    Quote Originally Posted by Denis View Post
    You posted 4 problems; all 4 are fairly basic in the financial math world.
    You have showed no work, therefore we don't know where you're stuck.
    If you're looking for solutions, the answer is a resounding NO.
    Please read "read before posting", then act accordingly.
    Thanks, I will provide work shortly.

  4. #4
    Elite Member
    Join Date
    Feb 2004
    Location
    Ottawa, Ontario
    Posts
    16,801
    Quote Originally Posted by aponi23 View Post
    A trust fund will start to pay you $15200 per year at the start of each year once you turn 18. The prevailing interest rate is 8.79% compounded annually. For how long can you receive payments if you are celebrating your 14th birthday today and the current value of your trust fund is $111345?
    Well, this one will look like this (Bank statement format):
    Code:
    AGE     PAYMENT      INTEREST    BALANCE
     14                             111,345.00
     15                  9,787.23   121,132.23
    ....
     18     -15,200     12,601.62   140,764.81
     19     -15,200     12,373.23   137,938.04
    ....
     37     -15,200      2,320.69    13,522.20
     38     -14,710.80   1,188.60          .00
    The final payment will be lower (as shown); so looks like you're expected
    to come up with an approximate number of years; check with your teacher...
    I'm just an imagination of your figment !

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •