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MAT 131 Sample Quiz 1

$3,000 is invested into a savings account paying 6% interest compounded semiannually for 6 years. The first few lines of a table showing how the balance will grow over time are shown below.

A. Complete the lines for periods 1 and 2. (Remember that the fictitious period zero is for graphing purposes only.)

Table

B. What is the future value of this investment?

C. How much interest will be earned over the term of this investment?

D. What is the annual percentage yield of this investment?

Answers