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10. Suppose you invest $30,000 in a CD on January 1, 2020 maturing in 14 years that pays interest of 6% per year compounded
10. Suppose you invest $30,000 in a CD on January 1, 2020 maturing in 14 years that pays interest of 6% per year compounded quarterly (meaning every three months) and credited at the end of each three month period. You don't withdraw any money from the CD during the term. (a) (3 marks) How much money will be in the CD account when it matures, namely 14 years after January 1, 2020? (b) (2 marks) What is the effective annual rate of interest on this CD?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
