A savings bond offers interest at a rate of 8.8% compounded semi-anually. Suppose that a $1500...

A savings bond offers interest at a rate of 8.8% compounded semi-anually. Suppose that a $1500 bond is purchased.

a) Determine the value of the investment after 12 years.

b) Describe how the shape of the graph of this function would change if a bonus of 5% of the principal was added after 5 years had passed

c)Describe how the shape of the graph changes if the size of the initial investment was doubled.

Expert Solution

milcah answered 2 years ago

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