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1. What is the effective annual percentage rate (EAR) of 14 percent compounded semiannually? 2. Richard Lionheart decides to begin saving toward the purchase of
1.
What is the effective annual percentage rate (EAR) of 14 percent compounded semiannually?
2.
Richard Lionheart decides to begin saving toward the purchase of a car in 4 years. If he put $1200 in a savings account paying 7 percent compounded annually at the end of each of the next 4 years, how much will he accumulate after 4 years?
3.
Arthur King purchased a 7-year, 9.3 percent savings certificate for $1000. If interest is compounded annually, what will be the value of his investment when the certificate matures?
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