Market mutual fund invests in short-term debt securities

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Reference no: EM132061109

1. A family has a $85,000 30 year mortgage at 7.75% compounded monthly. How much interest was paid during the first twenty year period?

a. $63,705.89

b. $78,835.27

c. $97,025.78

d. $111,889.34

e. $121,625.66

2. A Money Market mutual fund invests in short-term debt securities" True or False.

3. You have $500 that you would like to invest. You have 2 choices: Savings account A which earns 8% compounded annually, or savings account B which earns 7.75% compounded semiannually. Which would you choose and why?

Reference no: EM132061109

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