Question
On Alex 16 th birthday, her parents invest on her behalf an amount of $4,000 into an account that pays interest at 3.8% compounded semi-annually.
On Alex 16thbirthday, her parents invest on her behalf an amount of $4,000 into an account that pays interest at 3.8% compounded semi-annually.
(a)(5 marks)How much will the account be worth on Mary's 21stbirthday?
(b)(7 marks)Would Mary be better off if the account paid interest at 3.75% compounded quarterly? Explain.
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Financial Accounting
Authors: Jeffrey Waybright, Robert Kemp, Sherif Elbarrad
2nd Canadian edition
133375536, 9780133845396, 133845397, 978-0133375534
