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An investment of \(\$24,\!000\) is made in a government bond that will pay\( 1\%\) bi-monthly interest (meaning that the investment will increase by \(1\%\) every two months). At the end of five years, what is the total number of dollars in this investment? Express your answer to the nearest whole number.

 

Thx in advance

-wolf

 Aug 30, 2019
 #1
avatar+103148 
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We have six interest periods within a year....so we have  5 * 6  =  30 interest compoundings

 

So....after 5 years we have

 

24000(1.01)^(5 * 6)   =  24000(1.01)^30 ≈  $32,348

 

 

 

cool cool cool

 Aug 30, 2019
 #2
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+1

THX SO MUCH :)

-wolf

 Aug 30, 2019

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