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Tom invests $100,000 and earns $14,000 on the first five anniversaries of his investment. Upon receipt of each $14,000 payment, he immediately deposits $4,000 into
Tom invests $100,000 and earns $14,000 on the first five anniversaries of his investment. Upon receipt of each $14,000 payment, he immediately deposits $4,000 into a savings account earning 3% payable annually. If Tom withdraws the accumulated money in the savings account a year after the last payment, find the yearly yield rate (%) earned by Tom during the six-year period. Note that this investment includes two parts, the investment of the original $100,000 and the reinvestment at 3%. Check that your yield rate is between the rates for these two parts. (Round your answer to two decimal places.) Tom invests $100,000 and earns $14,000 on the first five anniversaries of his investment. Upon receipt of each $14,000 payment, he immediately deposits $4,000 into a savings account earning 3% payable annually. If Tom withdraws the accumulated money in the savings account a year after the last payment, find the yearly yield rate (%) earned by Tom during the six-year period. Note that this investment includes two parts, the investment of the original $100,000 and the reinvestment at 3%. Check that your yield rate is between the rates for these two parts. (Round your answer to two decimal places.)
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