Laura invested $650 at the end of every month in an investment fund that was earning interest at a rate of 4.44% compounded monthly. She stopped making regular deposits at the end of 5 years when the interest rate changed to 6.66% compounded quarterly. However, she let the money grow in this investment fund for the next 2 years. a. Calculate the accumulated balance in her investment fund at the end of 5 years. Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 7 years. Round to the nearest cent c. Calculate the total interest earned over the 7-year period.
Laura invested $650 at the end of every month in an investment fund that was earning interest at a rate of 4.44% compounded monthly. She stopped making regular deposits at the end of 5 years when the interest rate changed to 6.66% compounded quarterly. However, she let the money grow in this investment fund for the next 2 years. a. Calculate the accumulated balance in her investment fund at the end of 5 years. Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 7 years. Round to the nearest cent c. Calculate the total interest earned over the 7-year period.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 8E
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