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Question2 - Question 2 Score John deposits $1000 in Bank I...

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Unformatted text preview: Question 2 Score: John deposits $1000 in Bank I for a 10 year period with his investment compounded continuously at a 6% annual interest rate. Jane deposits $1000 in Bank II for a 10 year period with her investment compounded once every 5 years. (a) (4 pts) How much is John’s investment worth at the end of 10 years? (b) (4 pts) Determine the annual interest rate that Bank II must pay Jane if John and Jane are to have the same amount at the end of 10 years. (c) (2 pts) Sketch on the same graph the value of John’s and Jane’s bank accounts over the ten year period. («2 Rel/S lawman, Mala J?) VAT“ 2% 4 t ”M, X038 )0 V 2/ VIC Infill“ S ./ [0063/11 (t) gm 1/ '76 M4, (Mu/rum! Later/est Vim, [ow {My}1 ; Wm “2;; Hi0“ /0_Wll:0 ~ V worm”: q A Bank” Irv-mt 75“] jam/W Mll’fl 13“, fire Miami tutu/est wit/Q ...
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