Larry Brin, a 22 year-old and newly hired information technologist decides to invest $4,500 (10% of his annual salary) in a mutual fund earning 7% per year. He will continue to make annual deposits until he retires at age 62 (i.e., 40 years after he started his job). He expects his salary to increase by an average of 4% each year during this time. How much money will Larry have accumulated in his mutual fund when he retires?
A loan of $10,000 is to be repaid over a period of eight years. During the first four years, exactly half of the loan principal is to be repaid (along with accumulated compound interest) by a uniform series of payments of A1 dollar per year. The other half of the loan principal is to be repaid over four years, with accumulated interest, by a uniform series of payments of A2 dollar per year, If i=9% per year, what are A1 and A2?
Comments
Post a Comment