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2 Jan 2018
4. The two parts of this question are independent of each other. (a) In all of this question interest is 2.4% APR compounding monthly. Find the future value of a generalized annuity consisting of $300 payments at the end of each month for ten months and $200 thereafter at the end of each month for one year. Round your final answer up to the nearest dollar. 12 months [7 points (b) Since you are a UTSC Management student, your tablet is a target for on-line pop-up financial advertisements. Suppose one such advertisement makes the claim that, with a sufficiently high annual compounding rate, it is possible to earn 30% compound interest on an arbitrary investment of $P over exactly 3,003 days with an APR of 3.00%. Should you believe this claim? Sufficiently justify your answer with an appropriate calculation. [4 points)
4. The two parts of this question are independent of each other. (a) In all of this question interest is 2.4% APR compounding monthly. Find the future value of a generalized annuity consisting of $300 payments at the end of each month for ten months and $200 thereafter at the end of each month for one year. Round your final answer up to the nearest dollar. 12 months [7 points (b) Since you are a UTSC Management student, your tablet is a target for on-line pop-up financial advertisements. Suppose one such advertisement makes the claim that, with a sufficiently high annual compounding rate, it is possible to earn 30% compound interest on an arbitrary investment of $P over exactly 3,003 days with an APR of 3.00%. Should you believe this claim? Sufficiently justify your answer with an appropriate calculation. [4 points)
teacherrecoLv10
18 Apr 2022
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Bunny GreenfelderLv2
4 Jan 2018
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