Deposited at the end of year into mutual fund

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Reference no: EM132005985

An engineering graduate starts a new job at $60,000 per year. Her investments are deposited at the end of the year into a mutual fund that earns a nominal interest rate of 3% per year with semiannual compounding. How much money will be in the account immediately after she makes the last deposit?

A) She makes $6,000 annual deposits for the next 40 years.

B) She makes the $6,000 deposits for 10 years, the stops all investments for the next 10 years, and then resumes deposits of $10,000 per year for the next 20 years.

Reference no: EM132005985

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