You have a unique account in your local bankIf you deposit $7,000 today, the bank will pay you an annual interest rate of 5.5 percent for 4 years, 6.5 percent for 3 years, and 7 percent for 7 yearsHow much will you have in your account is 14 years?Answer is:Dollars

Given: Present value = $7,000 Interest rate for 4 years = 5.5% Interest rate for next 3 years =…

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You have a unique account in your local bank How much will you have in your account in 14 years?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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Question

You have a unique account in your local bank
If you deposit $7,000 today, the bank will pay you an annual interest rate of 5.5 percent for 4 years, 6.5 percent for 3 years, and 7 percent for 7 years
How much will you have in your account is 14 years?
Answer is:
Dollars

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