Susan invests 500 at the end of each year for 7 years at an effective annual...

Susan invests 500 at the end of each year for 7 years at an effective annual interest rate of 5%. The interest credited at the end of each year is reinvested at an effective annual interest rate of 6%. The accumulated value (in both funds) at the end of 7 years is X.

Mary invests 100 now at an effective annual interest rate of 6%. The interest credited at the end of each year is reinvested at an effective annual interest rate of 7%. The accumulated value (in both funds) at the end of 10 years is Y.

Lori invests 1000 at the beginning of each year for 14 years at an effective annual interest rate of 2.5%. The interest credited at the end of each year is reinvested at an effective annual interest rate of 3%. The accumulated value (in both funds) at the end of 14 years is Z.

Calculate X, Y , and Z.

Expert Solution

jeff jeffy answered 1 year ago

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