Question 10

THE NEXT THREE (3) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Not wanting to invest in RRSPs, Sally and some of her friends each placed $5,000 in long-term savings accounts at their individual banks. In the table below, the nominal rates and future amounts to be accumulated in the accounts are given. For questions 9 to 11, calculate how long the funds must be invested to accumulate at least the desired amounts. Question Amount invested Nominal Rate 9 $5,000 $5,000 $5,000 10 Amount Accumulated $6.105.12 $9.724 27 $8,498.09 J. = 5,5% Iz = 5.5% J4 = 5.75% 11 ate at least 10. What is the minimum number of semi-annual compounding periods required to accumulate at least $9.724.272 (1) 25 (2) 24 (3) 12 (4) 13