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Shawna just turned 21 and currently has no investments. She plans to invest $5,500 at the end of each of the next 3 years, starting
Shawna just turned 21 and currently has no investments. She plans to invest $5,500 at the end of each of the next 3 years, starting with her 22nd birthday. The rate of return on her investment is 6% per year. a) What will be the balance in her investment account if the interest is compounded annually? b) What will be the balance in her investment account if the interest is compounded monthly? Note: as annuity cash flows and compounding do not match you will have to split the problem into parts and look at how many periods, each individual cash flows gets to earn interest
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