Question
10. Suppose you invested $2,000 in a CD on January 1, 2016 maturing 5 years that pays interest of 4% per year compounded monthly and
10. Suppose you invested $2,000 in a CD on January 1, 2016 maturing 5 years that pays interest of 4% per year compounded monthly and credited at the end of each month. You don't withdraw any money for the CD during the term.
(a.) How much money will be in the CD account on January 1, 2021?
(b.) What is the effective annual rate of interest on this CD?
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Cima Official Exam Practice Kit Fundamentals Of Management Accounting Cima Certificate In Business Accounting 2006 Syllabus
Authors: Walter Allan
2nd Edition
0750687177, 978-0750687171
