An investor age 35 deposits $10000
An investor age 35 deposits $10000 in a fund earning 7% compound interest until retirement at age 65. Find the amount of interest earned (calculations by hand) : Between ages 35 and 45 Between ages 45 and 55 Between ages 55 and 65 Jim loans 10000$ to Amenda immediately, 5000$ in 3 years and 1000$ in 4 years. Amenda repays Jim with two equal payments of Y $; one payment of Y at the end of the fifth year and one payment of Y at the end of the sixth year, assuming a nominal interest rate of 6%, compounded monthly. (a) Draw a time diagram of the cash flows. 0 1 2 3 4 5 6 (b) Evaluate Y . Billy…
Details