Mrs Wong retired in 2006, she put a sum of $5000 into a fund that has a constant rate of return of 5 % per annum. Starting in 2006, she withdraws $400 each year and gives the money to her granddaughter as a birthday gift.
a) Denote the amount of money Mrs Wong has at time t years by $x.
b) In which year will the granddaughter receive her last $400?
a) x
b) In the year granddaughter receives last $400,
(1-0.05^t)}{1-0.05}-400t<400)
Part (a) is wrong.Originally Posted by Punch
Mrs Wong retired in 2006, she put a sum of $5000 into a fund that has a constant rate of return of 5 % per annum. Starting in 2006, she withdraws $400 each year and gives the money to her granddaughter as a birthday gift.
a) Denote the amount of money Mrs Wong has at time t years by $x.
b) In which year will the granddaughter receive her last $400?
a) x
b) In the year granddaughter receives last $400,
; (or
depending on the interpretation of the wording of the question)
:
:
CB
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