Answered: Assume you deposit $50,000 today in a…

Assume you deposit $50,000 today in a bank account offering an interest rate of 7.50% per year, compounded annually. How much interest on interest will you have earned after 3 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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Assume you deposit $50,000 today in a bank account offering an interest rate of 7.50% per year, compounded annually. How much interest on interest will you have earned after 3 years?

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