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Sally invested $1,750 into an RRSP that earned interest at 5% compounded semiannually for eight years....

Sally invested $1,750 into an RRSP that earned interest at 5% compounded semiannually for eight years.

   a. Determine the balance of the account at the end of the period? _____________  

   b. How much interest is earned? ______________

c. What is the effective rate? _____________

Math   Statistics-And-Probability   
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Answer #1

effective rate is 2.5 %

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