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Yellowknife Savings Offers Three-Year Term Deposits at 9

Question 10

Essay

Yellowknife Savings offers three-year term deposits at 9.125% compounded annually while your credit union offers such deposits at 8.9% compounded quarterly. If you have $3000 to invest, what is the maturity value of your deposit
a) at Yellowknife Savings?
b) at your credit union?

Correct Answer:

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a) FV = 3000.00(1.09125)3 = 300...

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