SOLUTION: 1. Sajid has a goal of saving $20 000 in 8 years. What principal invested for 5 years at 6% per annum, compounded semi-annually, then for the next 3 years at 6.5%/a, compounded qua
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-> SOLUTION: 1. Sajid has a goal of saving $20 000 in 8 years. What principal invested for 5 years at 6% per annum, compounded semi-annually, then for the next 3 years at 6.5%/a, compounded qua
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Question 241324: 1. Sajid has a goal of saving $20 000 in 8 years. What principal invested for 5 years at 6% per annum, compounded semi-annually, then for the next 3 years at 6.5%/a, compounded quarterly, would achieve this goal?
You can put this solution on YOUR website! The formula is
For 5 year investment: yrs (semi-annually)
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For 3 year investment: (quarterly)
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If I read the problem right, , the earnings
after 5 years, will become , the principle
invested for 3 years
given:
--------------------
substituting:
and
The original principle invested is $12,264.76
Hope I got it right
