Question
Drayton Valley Grains Cooperative wants to invest $45100 in a short-term deposit. The bank offers 1.8% interest for a one-year term and 1.2% for a
Drayton Valley Grains Cooperative wants to invest $45100 in a short-term deposit. The bank offers 1.8% interest for a one-year term and 1.2% for a six-month term. (a) How much would Drayton Valley Grains Cooperative receive if the $45100 is invested for one year? (Round your answer to the nearest cent where necessary. Do not include the dollar sign or commas in your answer.) (b) How much would Drayton Valley Grains Cooperative receive at the end of one year if the $45100 is invested for six months and then the principal and interest earned are reinvested for another six months? (Round your answer to the nearest cent where necessary. Do not include the dollar sign or commas in your answer.) Answer for part 2 (c) What would the one-year rate have to be to yield the same amount of interest as the investment described in part (b)? (Round your answer to the three decimal places. Do not include the percentage sign in your answer.)
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