Revision as of 23:44, 25 November 2023 by Admin (Created page with "A fund earns interest at a rate of 5% per annum effective. A person makes three deposits of $100 each to the fund, the first one three years from now, the second four years from now and the final one seven years form now. How much will be in the fund ten years from now? <ul class="mw-excansopts"> <li>300</li> <li>345</li> <li>390</li> <li>450</li> <li>490</li> </ul> '''References''' {{cite web |url=https://web2.uwindsor.ca/math/hlynka/392oldtests.html |last=Hlynka |fi...")
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ABy Admin
Nov 25'23

Exercise

A fund earns interest at a rate of 5% per annum effective. A person makes three deposits of $100 each to the fund, the first one three years from now, the second four years from now and the final one seven years form now. How much will be in the fund ten years from now?

  • 300
  • 345
  • 390
  • 450
  • 490

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

ABy Admin
Nov 25'23

Solution: C

100(1 + .05)7 + 100(1 + .05)6 + 100(1.05)3 = 115.76 + 134.01 + 140.71 = 390.48

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

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