Suppose I have the choice of investing $25000 in two different accounts:   Acct 1:  4.5% compounded semi-annually Acct 2:  3.75% compounded monthly   What is the future value of each account?  In other words, what will be the final compounded amount in each account after 6 years (assuming no additional deposits or withdrawals)?  How much interest does each account produce?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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Suppose I have the choice of investing $25000 in two different accounts:

 

Acct 1:  4.5% compounded semi-annually

Acct 2:  3.75% compounded monthly

 

What is the future value of each account?  In other words, what will be the final compounded amount in each account after 6 years (assuming no additional deposits or withdrawals)?  How much interest does each account produce?

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