(8) 7. Greg and Lou both have investment portfolios. a) What is the current value of...
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(8) 7. Greg and Lou both have investment portfolios. a) What is the current value of each portfolio? Assume all interest has been paid for the entire time since purchase All purchases were made at the beginning . . c) Who has the greater rate of return? Justify your answer with a written explanation or by showing your calculations for rate of return. Greg's portfolio: a 4-year $3000 GIC that earns 2.7%, compounded annually a 4-year $1500 CSB that earns 3.05%, compounded annually a savings account that earns 2.5%, compounded weekly for 5 years, into which he has been making deposits of $25 each week Lou's portfolio: a 4-year $1000 bond that earns 2.69% compounded annually a 3-year $1000 CSB that earns 2.75%, compounded semi-annually a savings account that earns 2.15%, compounded monthly for 6 years, into which she has been making deposits of $125 each month . . Use the next page to show the results of each calculation required to find the total value of each portfolio. (8) 7. Greg and Lou both have investment portfolios. a) What is the current value of each portfolio? Assume all interest has been paid for the entire time since purchase All purchases were made at the beginning . . c) Who has the greater rate of return? Justify your answer with a written explanation or by showing your calculations for rate of return. Greg's portfolio: a 4-year $3000 GIC that earns 2.7%, compounded annually a 4-year $1500 CSB that earns 3.05%, compounded annually a savings account that earns 2.5%, compounded weekly for 5 years, into which he has been making deposits of $25 each week Lou's portfolio: a 4-year $1000 bond that earns 2.69% compounded annually a 3-year $1000 CSB that earns 2.75%, compounded semi-annually a savings account that earns 2.15%, compounded monthly for 6 years, into which she has been making deposits of $125 each month . . Use the next page to show the results of each calculation required to find the total value of each portfolio.
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To evaluate the current value of each investment in Gregs and Lous portfolios we can apply the formula for compound interest for investments that do n... View the full answer
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