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Arlecino [84]
2 years ago
10

Sarah invested 12000 in a unit trust 5 years ago, the value of the unit trust has increased by 7% per annum for the last 3 years

. before this the price had decreased by 3% per annumCalculate the current price of the unit trust
Physics
2 answers:
miss Akunina [59]2 years ago
8 0

Answer:

The value of the fund today is $13831.72

Explanation:

Let us calculate the value at the end of each year, step by step. An annual  decrease of 3% corresponds to a multiplier 1.0-0.03 = 0.97. An increase of 7% corresponds to 1.07.

Value at the end of

year 1: 12000 * 0.97

year 2: 12000 * 0.97 * 0.97

year 3: 12000 * 0.97 * 0.97 * 1.07

year 4: 12000 * 0.97 * 0.97 * 1.07 * 1.07  

year 5: 12000 * 0.97 * 0.97 * 1.07 * 1.07 * 1.07 = 13831.72

The value of the fund today (end of year 5) is $13831.72

Damm [24]2 years ago
3 0

The Answer to this question is

Value fund is $13831.72

Hope this helps (;

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