Fund X is payinh simple interest of 7% per year.Fund Y gorws at
effective annual compound interest rate of 5% for the first two
years, nomial annual compound interest rate of 5.5% per year
convertible monthly fir tge next four years and effective annual
compound discount rate of 6% thereafter. John deposits 50 today and
another 100 in four years from today into fund X. Mary deposits 75
today and an amount of P in six years from today into fund Y.
a) find the effective discount rate during the second year
from today for fund X.
b) calculate the amount of interest earned by John from time 4
to time 10 on his investment in fund X.
c) find the amount of P such that at the end of 10 years from
today, the accumulated amount of John's deposits into fund X equals
the accumulated amount of Mary's deposits into fund Y.