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3. Nine years ago, Beatrice invested a sum of $6,000. The interest rate she earned changed over time: During the first three years, she earned 5 percent annually compounded, during the following two years she earned 8 percent compounded semiannually, and during the final three years, she earned 10 percent continuously compounded. Find the value of this investment at the end of the 8th Show all work.

3. Nine years ago, Beatrice invested a sum of $6,000. The interest rate she earned changed over time: During the first three years, she earned 5 percent annually compounded, during the following two years she earned 8 percent compounded semiannually, and during the final three years, she earned 10 percent continuously compounded. Find the value of this investment at the end of the 8th Show all work.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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3. Nine years ago, Beatrice invested a sum of $6,000. The interest rate she earned changed over time: During the first three years, she earned 5 percent annually compounded, during the following two years she earned 8 percent compounded semiannually, and during the final three years, she earned 10 percent continuously compounded. Find the value of this investment at the end of the 8th Show all work. 4. What will you pay today for an infinite annuity that will pay $3,000 each year, if the first payment occurs in precisely seven years? Assume an interest rate of 9 percent?
Transcribed Image Text:3. Nine years ago, Beatrice invested a sum of $6,000. The interest rate she earned changed over time: During the first three years, she earned 5 percent annually compounded, during the following two years she earned 8 percent compounded semiannually, and during the final three years, she earned 10 percent continuously compounded. Find the value of this investment at the end of the 8th Show all work. 4. What will you pay today for an infinite annuity that will pay $3,000 each year, if the first payment occurs in precisely seven years? Assume an interest rate of 9 percent?
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