Value of the investment in two years, Finance Basics

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Value of the investment in two years

Problem:

Your brother has asked you to help him with choosing an investment. He has $7,400 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0500 annually with the interest being paid quarterly.

Required:

Question 1: What will be the value of the investment in two years? Please illustrate out in detail and also all workings out.

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Finance Basics: Value of the investment in two years

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Finance Basics: Value of the investment in two years

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