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(a) The couple intend to invest their £15,000 savings in a fixed rate 5 year bond paying a nominal annual interest rate of 4.8%, compounded monthly. How much will this have grown in 5 years’ time?
 Dec 11, 2013

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annual rate 4.8% so monthly rate 4.8/12 = .4% per month

5 years = 12 * 5 = 60 months

15000*(1+.004)^(60) = 19059.61
 Dec 11, 2013

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