Question
Janie would like to invest US$ 75,000 (P) in a CD that pays the following rates (r) for the respective periods (t). Calculate the amount
Janie would like to invest US$ 75,000 (P) in a CD that pays the following rates (r) for the respective periods (t). Calculate the amount (A) she will have at the maturity of the investment in each scenario, considering that the amounts are accumulated at compound interest with different compounding periods (different m for each scenario). (i) r=4.5% yearly, t=3 years, compounded yearly (i.e.: m=1) (ii) r=4.25% yearly, t=3 years, compounded biannually (iii) r=4.00% yearly, t=3 years, compounded quarterly (iv) r=3.75%, t=3 years, compounded monthly (v) r=5.5%, t=6 years, compounded yearly (vi) r=5.4%, t=6 years, compounded biannually (vii) r=5.3%, t=6 years, compounded quarterly (viii) r=5.2%, t=6 years, compounded monthly
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