Question: Problem 6: Beta invests 2000 in a fund that earns 8% convertible quarterly, but payable an- nually. She reinvests each interest payment in individual separate

Problem 6: Beta invests 2000 in a fund that earns 8%

Problem 6: Beta invests 2000 in a fund that earns 8% convertible quarterly, but payable an- nually. She reinvests each interest payment in individual separate funds earning 9% convertible quarterly but payable annually. The interest payments from the separate funds are accumulated in a side fund that guarantees an annual effective interest rate of 7%. Calculate the annual effective yield of the investment if all the funds are withdrawn at the end of 10 years

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