onthly. After this period, the accumulated money was left in the account for another 5.5 yea e same interest rate. Calculate the accumulated amount at the end of the 11.5-year term. Calculate the total amount of interest earned during the 11.5-year period. $

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
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$5,400 was deposited at the end of every month for 6 years into a fund earning 2.8% compounded
monthly. After this period, the accumulated money was left in the account for another 5.5 years at
the same interest rate.
a) Calculate the accumulated amount at the end of the 11.5-year term.
b) Calculate the total amount of interest earned during the 11.5-year period.
Transcribed Image Text:$5,400 was deposited at the end of every month for 6 years into a fund earning 2.8% compounded monthly. After this period, the accumulated money was left in the account for another 5.5 years at the same interest rate. a) Calculate the accumulated amount at the end of the 11.5-year term. b) Calculate the total amount of interest earned during the 11.5-year period.
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