(a) An investor invests $10,000 into a fund for 3 years. The annual nominal interest rate...

 

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(a) An investor invests $10,000 into a fund for 3 years. The annual nominal interest rate remains at 4% each year although it is convertible monthly in the first year, quarterly in the second year, and semiannually in the third year. (i) Find the accumulated value of the fund at the end of the third year. Round your answer to the nearest cent. [4] (ii) Find the annualized effective interest rate over the 3-year period. Round your answer to 4 decimal places. [2] (a) An investor invests $10,000 into a fund for 3 years. The annual nominal interest rate remains at 4% each year although it is convertible monthly in the first year, quarterly in the second year, and semiannually in the third year. (i) Find the accumulated value of the fund at the end of the third year. Round your answer to the nearest cent. [4] (ii) Find the annualized effective interest rate over the 3-year period. Round your answer to 4 decimal places. [2]

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a To calculate the accumulated value of the fund at the end of the third year we need to compute the ... View the full answer