A fund earns interest at a rate of J4 = 8.04%. At the end of the quarter, just after interest is credited, a fee of 0.50% of the fund is withdrawn. If a single deposit of $2,000 is made on the 1st January of a particular year, determine i) Value of account on 1st january of the following year. ii) Annual effective rate of interest earned by the fund?? 2. Originally Posted by Ife A fund earns interest at a rate of J4 = 8.04%. At the end of the quarter, just after interest is credited, a fee of 0.50% of the fund is withdrawn. If a single deposit of$2,000 is made on the 1st January of a particular year, determine
So each quarter you have something like $1.0804P-(1.0804P)(.005)$. The first term is just applying the interest. The second term is taking that term and finding .05% of it, then subtracting from the first term. This action would be repeated each quarter.