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On February 1, 2004, Selma Purchased a $50,000 Compound-Interest CSB

Question 138

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On February 1, 2004, Selma purchased a $50,000 compound-interest CSB. The interest rate on the CSB was 1.55% for each of the first two years and 2.675% for the third year. What was the total interest earned on the CSB by the time Selma redeemed the bond on April 1, 2006? (Taken from CIFP course materials.)

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