Question
a) Jennifer invests $80,000 in an account which pays 7% compounded annually for 3 years. What is her total investment return at the end of
a) Jennifer invests $80,000 in an account which pays 7% compounded annually for 3 years. What is her total investment return at the end of the 3 years? (3 marks)
b) John has $5000 to invest. The bank will pay John 6% compounded monthly on his money. How much interest will John earn after 5 years? (4 marks)
c) Roslyns account pays her 5% compounded quarterly. If she invests $8250, how much interest is she paid over 2.5 years? (4 marks)
d) Margaret would like to save up for a snowboard that costs $520. How much would she have to invest now in an investment account earning 6.5% compounded semiannually, if she would like to purchase the snowboard 1 year from now?
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