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5-124.

Suppose you deposit $50 in Piggy Bank, which pays 5.5% annual interest. How much money will be in your account: Homework Help ✎

  1. After 6 months if the interest is compounded twice a year?

  2. After 1 year if the interest is compounded twice a year?

    Refer to hint in part (a).

  3. After 1 year if the interest is compounded monthly?

  4. After 2 years if the interest is compounded monthly?

    Refer to hint in part (c).

  5. After 2 years if the interest is compounded daily?

    Refer to hint in part (c).

  6. Why is your answer to part (e) larger than your answer to part (d)?

    Which Piggy Bank plan would you choose?