Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Explore in-depth answers to your questions from a knowledgeable community of experts across different fields. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

An engineering graduate starts a new job at $68,000 per year. Her
investments are deposited at the end of the year into a mutual fund
that earns a nominal interest rate of 5% per year with quarterly
compounding. How much money will be in the account immediately
after she makes the last deposit?
(a) She makes $4000 annual deposits for the next 40 years.
(b) She makes the $4000 deposits for 10 years, then stops all
investments for the next 10 years, and then resumes deposits of $6000
per year for the next 20 years.

Sagot :

Answer:

Explanation:

Effective Annual Rate=(1+r)^n-1 Here=r=5/4=1.25% per quarter EAR=(1.0125^4)-1 5.09% (a)..

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.