Question

you save bank has a unique account. if you deposit $9,000 today, the bank will pay you an annual interest rate of 3 percent for 6 years, 3.6 percent for 5 years, and 4.3 percent for 9 years. how much will you have in your account in 20 years?

Answer 1

Answer: We can calculate the future value of the account using the formula for compound interest:

FV = PV * (1 + r)^n

where:

PV = present value (initial deposit)

r = annual interest rate (as a decimal)

n = number of compounding periods (in years)

For the given account, we need to calculate the future value for each period and then add them together to get the total value after 20 years.

For the first 6 years at 3% interest rate:

PV = $9,000

r = 0.03

n = 6

FV1 = PV * (1 + r)^n = $10,456.86

For the next 5 years at 3.6% interest rate:

PV = $10,456.86

r = 0.036

n = 5

FV2 = PV * (1 + r)^n = $12,607.36

For the last 9 years at 4.3% interest rate:

PV = $12,607.36

r = 0.043

n = 9

FV3 = PV * (1 + r)^n = $19,238.22

Therefore, the total future value of the account after 20 years would be:

FV = FV1 + FV2 + FV3 = $10,456.86 + $12,607.36 + $19,238.22 = $42,302.44

Therefore, if you deposit $9,000 today in this unique account and leave it for 20 years, you will have $42,302.44 in your account.

Step-by-step explanation: