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Math Help - fund question

  1. #1
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    fund question

    A fund earning 4% effective has a balance of $1,500 at the beginning of the year. If $100 is added to the fund at the end of three months and if $700 is withdrawn from the fund at the end of nine months, find the ending balance under the assumption


    a(1)/a(t) = 1 + ( 1 - t )i
    help i have this finance assignment due....and the answer i got does not seem to be right at all...can someone help me thanks
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  2. #2
    Senior Member vincisonfire's Avatar
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    Reply

    If you were searching for this ;
    After three months, the funds are 1500*1.04^3/12=1515 $.
    Then you add 100$. You're at 1515$ + 100$ = 1615 $.
    Then 1615*1.04^6/12=1647$.
    And you substract 700$.
    Otherwise, sorry but I don't get the meaning of the assumption so I can't help you.
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  3. #3
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    i think we have to use that assumption formula to solve it...but i dont really get it so cant help u, but vicisions answer isnt rite though
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