$2,950 was deposited at the end of every six months for 8 years into a fund earning 4.5% compounded semi-annually. After this period, the accumulated money was left in the account for another 7 years at the same interest rate. a) Calculate the accumulated amount at the end of the 15-year term. $ b) Calculate the total amount of interest earned during the 15-year period.
$2,950 was deposited at the end of every six months for 8 years into a fund earning 4.5% compounded semi-annually. After this period, the accumulated money was left in the account for another 7 years at the same interest rate. a) Calculate the accumulated amount at the end of the 15-year term. $ b) Calculate the total amount of interest earned during the 15-year period.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
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$2,950 was deposited at the end of every six months for 8 years into a fund earning 4.5% compounded semi-annually. After this period, the accumulated money was left in the account for another 7 years at the same interest rate.
a) Calculate the accumulated amount at the end of the 15-year term.
$
b) Calculate the total amount of interest earned during the 15-year period.
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