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gewusel gewusel
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6 years ago
Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account, paying 3.00% compounded semi-annually.
a) How much will she accumulate in 20 years?
b) How much of the accumulated amount is interest?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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wrote...
6 years ago
PMT = 50, i = 0.03 ÷ 2 = 0.015, n = 20 × 12 = 240, c =   = 
a) p =   - 1 = 0.00248452
   FVg = 50.00  = 50.00(327.636659) = $16 381.83
b) Interest = 16381.80 - 240(50.00) = 16381.83 -12000.00 = $4381.83
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