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$500 Is Contributed at the Beginning of Each Period on a Semi-Annual

Question 48

Multiple Choice

$500 is contributed at the beginning of each period on a semi-annual basis for 5 years. If the rate of interest is 5% compounded semi-annually, determine how much interest was earned over this time.


A) $500.00
B) $462.36
C) $402.00
D) $741.73
E) $302.00

Correct Answer:

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