Question
Tommaso and Pietro have each been given 1500 euro to save for college Pietro invests his monthly in an account that pays a nominal annual
Tommaso and Pietro have each been given 1500 euro to save for college
Pietro invests his monthly in an account that pays a nominal annual interest rate of 2.75% compounded half-yearly
(a). Calculate the amount pietro will have in an account after 5 years. Give your answer correct to 2 decimal places
Tommaso wants to invest his money in an account such that his investment will increase to 1.5 times the initial amount in 5 years. Assume the account pays a nominal annual interest of r% compounded quarterly
(b). determine the value of r
Show work but also show work in terms of: for both part (a) and part (b)
N= number of payment periods in total
I% = annual interst rate (as a whole number)
Pv= present value
PMT: payment period
FV: futurevalue
P/Y: number of payments per year
C/Y: mumber of compounding periods per year
(set PMT to end)
All on the Financial applications (math apps) TVM solver of TI-84 calculator
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