Question
The maturity value of a savings account that belonged to Peach Company was $43,133.50. The interest...
The maturity value of a savings account that belonged to Peach Company was $43,133.50. The interest charged for the first 3 years was 6% compounded semi-annually, and 4% compounded quarterly for the next 4 years.
a. Calculate the amount that was deposited in the savings account at the beginning of the period.
b. Calculate the total amount of interest earned from this investment.
Homework Answers
Answer #1
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The concept tested in the question is time value of money and complex calculation based on the understanding of compound interest rates.
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