Concept explainers
(a)
To calculate: The total worth of the investment when the certificate matured from the following investment;
1: Deposition of $10,000 at 8% compounded semiannually in a 3-year certificate of deposit.
2: After 3 years, the maturity value was extracted and another $5,000 to buy a 4-year, 6% certificate compounded quarterly.
3: When the certificate matured another $8,000 were and a 3-year, 7% certificate a 3-year, 7% certificate compounded annually was bought.
(b)
To calculate: The total amount of compound interest earned over the period of 10 years, if the provided investment is;
1: Deposition of $10,000 at 8% compounded semiannually in a 3-year certificate of deposit.
2: After 3 years, the maturity value was extracted and another $5,000 to buy a 4-year, 6% certificate compounded quarterly.
3: When the certificate matured another $8,000 were and a 3-year, 7% certificate a 3-year, 7% certificate compounded annually was bought.
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Contemporary Mathematics for Business & Consumers