(i) Wesley Nolan has set up an annuity due with the
(i) Wesley Nolan has set up an annuity due with the
(i) Wesley Nolan has set up an annuity due with the Granville Island Credit Union. Each month $170 is electronically debited from his checking account and placed into a savings account earning 6% interest, compounded monthly. What is the value of Wesley’s account after 18 months?
(ii) When Tom Reynolds was born, his parents began depositing $500 at the beginning of every year into an annuity to save for his college education. If the account paid 7% interest compounded annually for the first 10 years and then dropped to 5% for the next 8 years, how much is the account worth now that Tom is 18 years old and is ready for college?
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