You have $1,500 to invest today at 7% interest compounded annually. a. Find how much you will
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a. Find how much you will have accumulated in the account at the end of (1) 3 years, (2) 6 years, and (3) 9 years.
b. Use your findings in part a to calculate the amount of interest earned in (1) the first 3 years (years 1 to 3), (2) the second 3 years (years 4 to 6), and (3) the third 3 years (years 7 to 9).
c. Compare and contrast your findings in part b. Explain why the amount of interest earned increases in each succeeding 3-year period.
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a 1 N 3 I 7 PV 1500 b 1 Interest earned FV 3 PV Solve for FV 3 183756 Interest earned 183756 150000 ...View the full answer
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Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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