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Please no excel Smith invests 2000, at the beginning of the year, in a fund which credits interest at the end of each six-month period
Please no excel
Smith invests 2000, at the beginning of the year, in a fund which credits interest at the end of each six-month period at a nominal annual rate of i convertible semiannually. The interest payments are immediately reinvested in a separate fund earning interest at an annual effective rate of 5%. At the end of ten years, immediately after the interest is credited, Smith withdraws all the balance from both funds. From this 20-year investment, he earns an annual effective yield of 6.484%. Calculate i. Smith invests 2000, at the beginning of the year, in a fund which credits interest at the end of each six-month period at a nominal annual rate of i convertible semiannually. The interest payments are immediately reinvested in a separate fund earning interest at an annual effective rate of 5%. At the end of ten years, immediately after the interest is credited, Smith withdraws all the balance from both funds. From this 20-year investment, he earns an annual effective yield of 6.484%. CalculateStep by Step Solution
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