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Math Help - Applications of series and sequences (Superannuation, repayments)

  1. #1
    Junior Member Misa-Campo's Avatar
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    Applications of series and sequences (Superannuation, repayments)

    Question: At the beginning of each year, Sarah will deposit $1000 in a fund paying 10% each year compound interest:

    i) What will be the value of Sarah's first deposit when it has been invest for n years?

    ii) Show that after n years the total value of all her deposits will be

    1000(1.1)((1.1^n)-1)
    ---------------------
    0.1

    iii) Sarah decides to withdraw all her funds at the end of 20 years how much will she have?
    Last edited by Misa-Campo; July 27th 2008 at 01:43 AM.
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  2. #2
    Grand Panjandrum
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    Quote Originally Posted by Misa-Campo View Post
    Question: At the beginning of each year, Sarah will deposit $1000 in a fund paying 10% each year compound interest:

    i) What will be the value of Sarah's first deposit when it has been invest for n years?

    ii) Show that after n years the total value of all her deposits will be

    1000(1.1)((1.1^n)-1)
    ---------------------
    0.1

    iii) Sarah decides to withdraw all her funds at the end of 20 years how much will she have?
    ..
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  3. #3
    Grand Panjandrum
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    Quote Originally Posted by Misa-Campo View Post
    Question: At the beginning of each year, Sarah will deposit $1000 in a fund paying 10% each year compound interest:

    i) What will be the value of Sarah's first deposit when it has been invest for n years?

    ii) Show that after n years the total value of all her deposits will be

    1000(1.1)((1.1^n)-1)
    ---------------------
    0.1

    iii) Sarah decides to withdraw all her funds at the end of 20 years how much will she have?
    ..
    Attached Thumbnails Attached Thumbnails Applications of series and sequences (Superannuation, repayments)-gash.png  
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  4. #4
    Grand Panjandrum
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    Quote Originally Posted by Misa-Campo View Post
    Question: At the beginning of each year, Sarah will deposit $1000 in a fund paying 10% each year compound interest:

    i) What will be the value of Sarah's first deposit when it has been invest for n years?


    iii) Sarah decides to withdraw all her funds at the end of 20 years how much will she have?
    iii. See the answer to part ii. but with n=20.

    RonL
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