The Simpson Company invested $20000 in a fund that was earning interest at a rate of 5% compounded semi-annually. After 3 years and 9 months, the company transferred these funds to anotherinvestment that was earning interest at 5.5% compounded monthly, What is the balance in the fund at the end of 5 vears (from the initial investment)? Show your calculator entries in the table belowwith the first 3 years and 9 months on the left and the remainder of the time on the right.Save AnsN =N=I/Y =IY =PV =PV =PMT =PMT =FV =FV =PY =PY =C/Y =CY =The balance in the fund at the end of 5 years is $

Given data, Investment p = $20000 Rate of interest r = 5%= 0.05 compounded semi annually, so, n=2…

Answered: Save The Simpson Company invested…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Red Company invested $10,000 in a fund that was earning interest at a rate of 4.00% compounded semi-annually. After 2 years and 6 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly. a. What is the balance in the fund at the end of 2 years and 6 months? $11,040.81 Round to the nearest cent b. What is the balance in the fund at the end of 6 years (from the initial investment)? $0.00 Round to the nearest cent c. By what amount did the fund grow during the 6 year period? Round to the nearest cent Give typing answer with explanation and conclusion
Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded semi-annually. After 2 years and 9 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly.
$2,300 was deposited at the end of every month for 6 years into a fund earning 2.3% compounded monthly. After this period, the accumulated money was left in the account for another 5 years at the same interest rate. a) Calculate the accumulated amount at the end of the 11-year term. b) Calculate the total amount of interest earned during the 11-year period. TVM Solver
Red Company invested $10,000 in a fund that was earning interest at a rate of 3.00% compounded semi-annually. After 3 years and 9 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly. a. What is the balance in the fund at the end of 3 years and 9 months? b. What is the balance in the fund at the end of 6 years (from the initial investment)? c. By what amount did the fund grow during the 6 year period?
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