MATA32H3 Lecture : Financial Mathematics Part III
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From fall 2010 final exam, short answer question 5 a) Assume you deposit into ordinary annuity 1 at the end of every 6 months after your. 18th birthday up to and including your 40th birthday (thus you make 44 deposits). After your last deposit at age 40, no further deposits into annuity 1 are made and its value is then left to accumulate interest at 6% apr compounding semi-annually up to and including your 60th birthday. At the end of each year starting after your 50th birthday, you now deposit into ordinary annuity 2 up to and including your 60th birthday (thus you make 10 deposits). Find the value of r so that immediately after your 60th birthday, you will have exactly. million dollars in combined total from annuity 1 and annuity 2. Round your answer for r up to the nearest dollar. From fall 2011 final exam, short answer question 2 b)
