Mathematics

Mathematics

Problem

Brooke invested $4000 in an account that pays 3% p.a. interest compounded half-yearly for 6 years. a. Calculate the final value of the investment. b. How much interest did Brooke earn? c. Given that inflation averaged 3.2% per year over the investment period, find the real value of the investment. d. Discuss the effectiveness of the investment once inflation has been considered.

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