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Ingrid Birdman Can Earn a Nominal Annual Rate of Return

Question 2

Multiple Choice

Ingrid Birdman can earn a nominal annual rate of return of 12%, compounded semiannually. If Ingrid made 40 consecutive semiannual deposits of $500 each, with the first deposit being made today, how much will she accumulate at the end of Year 20? Round off to the nearest $1.


A) $52,821
B) $57,901
C) $82,024
D) $64,132

Correct Answer:

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