Question

You Save Bank has a unique account. If you deposit $8,000 today, the bank will pay you an annual interest rate of 3 percent for 5 years, 3.6 percent for 4 years, and 4.3 percent for 8 years. How much will you have in your account in 17 years

Answer 1

Total money after 17 years = $14962

Step-by-step explanation:

Given present value or mount deposited today = $8000

Annual interest rate for 5 years = 3 %

Annual interest rate for 4 years = 3.6 %

Annual interest rate for 8 years = 4.3 %

Now we have to calculate the total amount after 17 years. Below is the calculation.

`Total \ amount = 8000(1 + 0.03)^(5) (1+ 0.036) ^(4) (1+ 0.043 ) ^(8) \\Total \ amount = $14962`