you plan to save $800 on a monthly basis in an interest bearing account with an annual

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you plan to save $800 on a monthly basis in an interest bearing account with an annual interest rate of 3.25%.

(a) If you plan to retire in 30 years, how much money will you have then for retirement assuming monthly compounding?

(b) If you decide to reinvest your funds at maturity for an additional 3 years, under simple interest, and an annual interest rate of 4.25%,

How much money will you have at the end of the reinvestment process?

Related Book For answer-question

Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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Posted Date: Mar 29, 2023 12:26 AM

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you plan to save $800 on a monthly basis in an interest bearing account with an annual

Question:

Expert Answer:

a To calculate the future value of your savings we can use the formula for compound in... View the full answer

Financial and Managerial Accounting

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