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FINANCIAL UNIT 1) Andre deposited $800 in an account at the end of every 6 month period for 7 years. The account paid 9% comp

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Answer #1

a.

The accumulated value is calculated below;

Accumulated value = 800 x ((1+0.045)7x2 - 1 0.045

Accumulated value = 800 x 0.851945 0.045

Accumulated value = 800 x 18.93211

Accumulated value = 15, 145.69

b.

The total interest earned is calculated below;

$15,145.69 - $800*14 = $3,945.69.

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