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a) an investment at 5%/a, compounded annually, for 5 years

b) an investment at 4.5%/a, compounded semi-annually, for 42 months

c) a loan at 5.2%/a, compounded weekly, for 2 years

 Feb 16, 2021
 #1
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a.)  conversion period is  1 year (12 months)   interest is 5% per period

b.)   conversion period is  6 months  or 1/2 year   interest per period    is  4.5 /2 = 2.25 %   (.0225 in decimal form)

            42 months is  42/6 =   7 periods

c.)   conversion period is 1 week   there is 104 periods ( 52 weeks x 2 years)  interest per period is  5.2 /52 = .1%  (this is .001 in decimal)

 Feb 17, 2021

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