On Alex 16 th birthday, her parents invest on her behalf an amount of $4,000 into an
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Question:
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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