MATHEMATICS OF BUSINESS AND FINANCE Eric invested $1,250 at the end of every month into an...

MATHEMATICS OF BUSINESS AND FINANCE

Eric invested $1,250 at the end of every month into an investment fund that was earning interest at 4.50% compounded monthly. He stopped making regular deposits at the end of 5 years when the interest rate changed to 4.75% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years.

a. Calculate the accumulated balance in his investment fund at the end of 5 years.

b. Calculate the accumulated balance in his investment fund at the end of 9 years.

c. Calculate the amount of interest earned over the 9-year period.

Solutions

Expert Solution

Answer for sub-part A is attached below,

Answer for sub-part B is attached below,

Answer for sub-part C is attached below,

jeff jeffy answered 1 year ago

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