Shannon deposited $15,500 into a fund at the beginning of every quarter for 20 years. He then stopped making deposits into the fund and allowed the investment to grow for 6 more years. The fund was growing at 5.67% compounded monthly. a. What was the accumulated value of the fund at the end of year 20?
Shannon deposited $15,500 into a fund at the beginning of every quarter for 20 years. He then stopped making deposits into the fund and allowed the investment to grow for 6 more years. The fund was growing at 5.67% compounded monthly. a. What was the accumulated value of the fund at the end of year 20?
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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Transcribed Image Text:Shannon deposited $15,500 into a fund at the beginning of every quarter for 20 years.
He then stopped making deposits into the fund and allowed the investment to grow
for 6 more years. The fund was growing at 5.67% compounded monthly.
a. What was the accumulated value of the fund at the end of year 20?
Round to the nearest cent
Transcribed Image Text:b. What was the accumulated value of the fund at the end of year 26?
Round to the nearest cent
c. What is the total amount of interest earned over the 26-year period?
Round to the nearest cent
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