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Suppose that you purchase an EE savings bond for $2,000 at 0.85%. This savings bond is federally guaranteed and if it does not reach maturity
Suppose that you purchase an EE savings bond for $2,000 at 0.85%. This savings bond is federally guaranteed and if it does not reach maturity by year 20, the Treasury Department will make a onetime adjustment so that your money will double regardless of the interest earned. Part A: In 20 years, what will be the accumulated value of the bond? Round to the nearest penny. $ Part B: How much will the treasury have to add to bring the value up to double the original investment? $ Part C: How long will it take for this investment to double without the adjustment? Answer: years Part D: Use the Rule of 72 to estimate the doubling time for this investment. Answer: years
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