Question

Simple interest see question

Answer 1

P((1 + r)^6) = 1,675.80

P((1 + r)^5) = 1,606.50

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b) 1 + r = 266/255, so r = 11/255 = .04 = 4%

a) P((1 + 11/255)^5) = 1,606.50

P = $1,300.69