Business, 18.09.2019 20:20 slamkam10

Suppose that a woman deposits $10,000 into an investment fund that guarantees to pay 3.0% interest every 6 months. that is, interest is compounded semiannually (i. e., once every 6 months) at a rate of 3.0% each semiannual period. a) what is the nominal annual interest rate? b) what is the effective annual interest rate? c) assuming that no additional deposits or withdrawals are made, use the appropriate compound interest factors to determine how much the fund will be worth: i) after 1 year; ii) after 5 years. d) verify that your answers in parts (b) and (c) are correct by constructing a spreadsheet that shows how the initial deposit will grow over 5 years. at a minimum, your spreadsheet should include a row for each interest period over a 5-year planning horizon and show:  the value of in the investment fund at the start of each interest period  the amount of interest earned each interest period; and  the value of the fund at the end of each interest period

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Suppose that a woman deposits $10,000 into an investment fund that guarantees to pay 3.0% interest e...

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