Hugo won $5000 in a road race and invested this sum at an interest rate of 4.8% per annum compounding monthly.
- What is the value of Hugo’s investment after 12 months?
- Write your answer in dollars, correct to the nearest cent. (1 mark)
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- Suppose instead that at the end of each month Hugo added $200 to his initial investment of $5000.
- Find the value of this investment immediately after the 12th monthly payment of $200 is made.
- Write your answer in dollars, correct to the nearest cent. (1 mark)
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Assume Hugo follows the investment that is described in part b.i.
- Determine the total interest he would earn over the 12-month period.
- Write your answer in dollars, correct to the nearest cent. (1 mark)
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