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Find the accumulated value of investment after three years

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Reference no: EM133089738

Question - Philip invests $500 at the beginning of each month into an account earning an effective rate of 6% for 2 years. The interest earned from the account can only be reinvested at an effective rate of 5%.

Required -

(a) Find the accumulated value of the investment after 3 years.

(b) Compare your answer with the case when all interests are reinvested at 6% effective.

Reference no: EM133089738

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