6% effemive RM1000 is invested in a fund for 3 years at 6% simple interest rate for the first interest rate for the second year and 6% nominal interest rate compounded quarterly for the third year, year. Find a. The amount of interest earned in the second year. b. The accumulated value of the investment at the end of the third year.

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
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28 RM1000 is invested in a fund for 3 years at 6% simple interest rate for the first year, 6% effentive
interest rate for the second year and 6% nominal interest rate compounded quarterly for the third
year. Find
a. The amount of interest earned in the second year.
b. The accumulated value of the investment at the end of the third year.
Transcribed Image Text:28 RM1000 is invested in a fund for 3 years at 6% simple interest rate for the first year, 6% effentive interest rate for the second year and 6% nominal interest rate compounded quarterly for the third year. Find a. The amount of interest earned in the second year. b. The accumulated value of the investment at the end of the third year.
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