Faisal deposits $1,139 in a fund paying 4% annual compound interest; after 5 years the fund increases its interest rate to 8%; after 2 years of paying 8% interest the fund begins paying 11%. How much will be in the fund 11 years after the initial deposit?

Faisal deposits $1,139 in a fund paying 4% annual compound interest; after 5 years the fund increases its interest rate to 8%; after 2 years of paying 8% interest the fund begins paying 11%. How much will be in the fund 11 years after the initial deposit?

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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Faisal deposits $1,139 in a fund paying 4% annual compound interest; after 5 years the fund increases its interest rate to 8%; after 2 years of
paying 8% interest the fund begins paying 11%. How much will be in the fund 11 years after the initial deposit?

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