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Higher Level Maths question

noubliezjamais · 2019-05-25 12:23:39

Hey, I'm studying a mock paper 1 for HL Maths and not to sure about a certain question involving financial maths. Don't know whether to use the armotisation formula, interest formula etc... Peter intends to retire in 25 years time. He decides to save €550 at the start of each month until he retires. The pension fund is…

25-05-2019 12:23pm

#1

noubliezjamais

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Join Date: January 2019

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Hey, I'm studying a mock paper 1 for HL Maths and not to sure about a certain question involving financial maths. Don't know whether to use the armotisation formula, interest formula etc...

Peter intends to retire in 25 years time. He decides to save €550 at the start of each month until he retires. The pension fund is offering him a rate of 5.2% AER.

a (i) Find the rate of interest compunded monthly that would be equivalent to an AER of 5.2%, correct to six significant figures.

(ii) What lump sum will Peter receive on his retirement? Give your answer correct to the nearest euro

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