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Question 2. (/4) Say you set aside $5,000 into a savings account on Jan. 1, 2020 with a nominal interest rate of 4% compounded semi-annually.
Question 2. (/4) Say you set aside $5,000 into a savings account on Jan. 1, 2020 with a nominal interest rate of 4% compounded semi-annually. After 4 years, i.e., Jan. 1, 2024 you move $2,000 from that account into a new account which has a nominal interest rate of 6% compounded monthly. a. After 7 years, i.e., Jan. 1, 2027, how much money will you have in both accounts? b. If your original goal was to have $10,000 on Jan. 1, 2027, how much would you have to invest into the first account (4%, semi-annual) on year 6, i.e., Jan. 1, 2026 to reach that goal
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