Homework Answers
Monthly contribution = 6000.
Total monthly payments = 5 x 12 = 60
a) Interest rate is 10/12 = 0.8333%
Amount withdrawn at the end of five years = 6000 * (F/A, 0.8333%, 60)
= 6000 * ((1+0.8333%)^60-1)/0.8333%
= 464,622
b) Interest rate is (1 + 10%/365)^30 - 1 = 0.82519%
Amount withdrawn at the end of five years = 6000 * (F/A, 0.82519%, 60)
= 6000 * ((1+0.82519%)^60-1)/0.82519%
= 463,424
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