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X is deposited into a fund A which earns an annual effective rate of 5%. At the end of each year the interest earned plus
X is deposited into a fund A which earns an annual effective rate of 5%. At the end of each year the interest earned plus 2000 is withdrawn. At the end of five years the fund is depleted. The interest and principle withdrawn from fund A is deposited in fund B which earns 6% annual effective rate of interest. Determine the amount in fund B at the end of five years. Ans. 13, 030.92
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