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E6-2 Lyle O’Keefe invests $30,000

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E6-2 (Simple and Compound Interest Computations) Lyle O’Keefe invests $30,000 at 8% annual
interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of
the 8 years, Lyle withdrew the accumulated amount of money.

Instructions
(a) Compute the amount Lyle would withdraw assuming the investment earns simple interest.

(b) Compute the amount Lyle would withdraw assuming the investment earns interest compounded
annually.

(c) Compute the amount Lyle would withdraw assuming the investment earns interest compounded
semiannually.

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