Five years ago, Michael began saving for his daughter's education in Australia by investing a lump sum
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Question:
Five years ago, Michael began saving for his daughter's education in Australia by investing a lump sum of $50,000 in a financial asset with a yearly return of 12.5%, compounded monthly.
Calculate the effective annual interest rate (EAR) of this investment?
Determine the current amount of money accumulated by Michael's investment portfolio?
If Michael's goal is to have a total of $100,000 for his daughter's education, how much time will he need to reach this target, given an annual interest rate of 13% compounded yearly?
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
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