Determine the accumulated value of fund y at the end

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Reference no: EM131911588

Solve the question given below

1000 is deposited into Fund X, which earns an annual effective rate of 6%. At the end of each year, the interest earned plus an additional 100 is withdrawn from the fund. At the end of 10th year, the fund is depleted.

The annual withdrawals of interest and principal are deposited in Fund Y, which earns an annual effective rate of 9%.

Determine the accumulated value of Fund Y at the end of Year 10.

Reference no: EM131911588

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