a. Calculate the accumulated value of her investment after the first 8 years. Round to the nearest cent b. Calculate the accumulated value of her investment at the end of 16 years. Round to the nearest cent c. How much interest did she earn in her investment over the 16 years.

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
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Michelle invested $1,600 at the end of every 6 months into an RRSP for 16 years. For
the first 8 years she earned interest at a rate of 4.30% compounded semi-annualy and
for the next 8 years she earned interest at a rate of 6.40% compounded semi-annualy.
a. Calculate the accumulated value of her investment after the first 8 years.
Round to the nearest cent
b. Calculate the accumulated value of her investment at the end of 16 years.
Round to the nearest cent
c. How much interest did she earn in her investment over the 16 years.
Round to the nearest cent
Transcribed Image Text:Michelle invested $1,600 at the end of every 6 months into an RRSP for 16 years. For the first 8 years she earned interest at a rate of 4.30% compounded semi-annualy and for the next 8 years she earned interest at a rate of 6.40% compounded semi-annualy. a. Calculate the accumulated value of her investment after the first 8 years. Round to the nearest cent b. Calculate the accumulated value of her investment at the end of 16 years. Round to the nearest cent c. How much interest did she earn in her investment over the 16 years. Round to the nearest cent
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