Manuel wants to invest an inheritance of $21,000 for one year. His credit union offers 4.09% for a one-year term or4.04% for a six-month term.(a) How much will Manuel have after one year if he invests at the one-year rate?(b) How much will Manuel have after one year if he invested for six months at a time at 4.04% each time?(c) What would the one-year rate have to be to yield the same amount of interest as the investment described in part(b)?(a) After one year, Manuel will have $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places asneeded.)(b) One year after the initial investment, Manuel will have $.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places asneeded.)(c) The one-year rate to yield the same amount of interest as the investment described in part (b) is %.(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places asneeded.)

Part A inheritance amount =21000 1year term interest =4.09% Future value after one year…

ne year, Manuel will have $ e final answer to the nearest cent as needed. Round all interm mar after the initial investment, Manuel will have $ e final answer to the nearest cent as needed. Round all interr

ne year, Manuel will have $ e final answer to the nearest cent as needed. Round all interm mar after the initial investment, Manuel will have $ e final answer to the nearest cent as needed. Round all interr

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

Problem 1PS

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