Question scenario has been provided below.
This are the question:
1) Given: L = $10000, M = $1000, R = 4%, find your savings in
the plan after the first 24 months end.
2) Determine the lump sum received after you completed the whole
plan.
Question Scenario Has Been Provided Below This Are The Question 1 Given L 10000 M 1000 R 4 Find Your Sav 1 (98.06 KiB) Viewed 37 times
Question 10 (14 marks) A financial advisor suggests an investment plan for your consideration. Your one-time initial investment is $L. You put a fixed monthly contribution of $M to the plan for 24 months. You will contribute to the plan on the last date of each month. The plan will pay you an annual interest rate of R% compounded monthly during these 24 months. The interests will be deposited into your plan on the last date of each month. After 24 months of continuous investment, you can stop the monthly contributions and keep the money in the plan for additional 120 months. The plan will pay you an annual interest rate of (R+1)% compounded monthly during this period. When the investment plan is completed, you will receive an extra 5% of your total savings as a bonus. Let S,, be the amount of money saved in the plan at the end of the nth month, following the nth monthly contribution. You start to contribute on the last date of the first month and pay the last monthly contribution at the end of the 24th month.
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