How long will it take the investment

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Reference no: EM132821332

Problem - Suppose $500 is invested at 4% compounded quarterly.

(a) How long will it take the investment to accumulate to $750 if the exact method for accumulation is in effect?

(b) How long will it take the investment to accumulate to $750 if the practical method for accumulation is in effect? Be sure to us linear interpolation!

(c) What annual effective interest rate must $500 be invested at to accumulate to $750 in 10 years?

Reference no: EM132821332

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