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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Characteristics of Bonds