Savings account for four years
Problem:
What is the future value of $1300, placed in a savings account for four years if the account pays 0.07 compounded quarterly?
Note: Explain all steps comprehensively.
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Ingrid Birdman can earn a nominal annual rate of return of 12%, compounded semi-annually. If Ingrid made 40 consecutive semi-annual deposits of $500 each, with the first deposit being made today, how much will she accumulate at the end of Year 20?
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What is the future value of $1300, placed in a savings account for four years if the account pays 0.07 compounded quarterly? Note: Explain all steps comprehensively.
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