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A trust fund is to be formed by depositing #4,000 every six months for 25 years in a bank that promises to pay a fixed rate over t entire term. If the amount of the fund at the end of the term is $300,000, then the rate compounded semi-annually is A) 20.40%. B 1.57%. с 10.20%. D) 33.33%. 3.14%.

A trust fund is to be formed by depositing #4,000 every six months for 25 years in a bank that promises to pay a fixed rate over t entire term. If the amount of the fund at the end of the term is $300,000, then the rate compounded semi-annually is A) 20.40%. B 1.57%. с 10.20%. D) 33.33%. 3.14%.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A trust fund is to be formed by depositing $4,000 every six months for 25 years in a bank that promises to pay a fixed rate over the entire term. If the amount of the fund at the end of the term is $300,000, then the rate compounded semi-annually is A B 20.40%. 1.57%. C) 10.20%. D 33.33%. E 3.14%.
Transcribed Image Text:A trust fund is to be formed by depositing $4,000 every six months for 25 years in a bank that promises to pay a fixed rate over the entire term. If the amount of the fund at the end of the term is $300,000, then the rate compounded semi-annually is A B 20.40%. 1.57%. C) 10.20%. D 33.33%. E 3.14%.
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