Thread: 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 If $100 is added to the fund at the end of three months and if $700 is withdrawn from the fund at the end of nine months, find the ending balance under the assumption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

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.

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