Question
(a)Ken invested $6,000 in an a savings account that pays interest at the rate of 1% per quarter. At the end of five years, Ken
(a)Ken invested $6,000 in an a savings account that pays interest at the rate of 1% per quarter. At the end of five years, Ken withdraws only the interest. How much does he withdraw? (3 marks)
(b) How long will it take for an amount of $1,000 to treble if interest is paid at 15 percent per annum if: (i) compounded semi-annually?(2 marks) (ii) compounded quarterly?
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
