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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.

 Aug 12, 2021
 #1
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"Bi - monthly"   can either  mean  "twice a month"   or  "once  every two  months"

 

If  the first  definition is meant,  we   have   5 * 12 * 2  =  120 compounding periods  and  the  amt is

24000  * ( 1.01)^120  = $79209

 

If the second definition,  we  have   5 * 6  =   30 compunding periods  and the amt is

24000 *  ( 1.01)^30   = $32348

 

 

cool cool cool

 Aug 12, 2021

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