Chris invests 500 at the beginning of each year into Fund A. Fund A earns interest...
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Chris invests 500 at the beginning of each year into Fund A. Fund A earns interest at a nom- inal interest rate of 12% compounded monthly. Fund A pays Chris interest monthly. Chris reinvests that interest in Fund B earning an annual effective rate of 7%. Calculate the total amount in Fund A and Fund B after 10 years. (A) 35, 042 (В) 36, 126 (C) 37, 295 (D) 38, 782 (E) 39, 573 Chris invests 500 at the beginning of each year into Fund A. Fund A earns interest at a nom- inal interest rate of 12% compounded monthly. Fund A pays Chris interest monthly. Chris reinvests that interest in Fund B earning an annual effective rate of 7%. Calculate the total amount in Fund A and Fund B after 10 years. (A) 35, 042 (В) 36, 126 (C) 37, 295 (D) 38, 782 (E) 39, 573
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Answer rating: 100% (QA)
ANSWER C is the correct answer 3 7295 The nominal interest rate also known as an Annualised Percen... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
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