For the past five years, Ludmilla has been investing $500 at the end of every month into

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For the past five years, Ludmilla has been investing $500 at the end of every month into an investment earning 3% compounded monthly.

a. How much is the investment worth today?

b. How much of the answer in Part (a) represents interest earned over the course of the five years?

c. How much more interest would Ludmilla have earned if her investment had earned 6% compounded monthly instead of 3% compounded monthly?

d. Explain why the total interest earned at 6% compounded monthly in Part (c) is more than double the amount of interest earned at 3% compounded monthly in Part (b).

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Fundamentals Of Business Mathematics In Canada

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Authors: F. Ernest Jerome, Jackie Shemko

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Question Posted: Oct 21, 2020 05:05 AM

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For the past five years, Ludmilla has been investing $500 at the end of every month into

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a Given b Over the course of the five years Ludmilla invested 60 p...View the full answer

Fundamentals Of Business Mathematics In Canada

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