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You have just made your first $2,500 contribution to your individual retirement account. Assuming you earn an 8 percent rate of return (compounded semi-annually) and

You have just made your first $2,500 contribution to your individual retirement account. Assuming you earn an 8 percent rate of return (compounded semi-annually) and make no additional contributions, what will your account be worth in 10 years? What if you only earn a 2 percent rate of return (compounded semi-annually)? What is the effective interest rate on each of the investments?

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