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(20 points) Steward Denethor, son of Ecthelion is a shrewd financial manueverer. He originally deposits 1000 in an account at the Bank of Minas Tirith,
(20 points) Steward Denethor, son of Ecthelion is a shrewd financial manueverer. He originally deposits 1000 in an account at the Bank of Minas Tirith, earning an annual effective rate of 8%. At the end of each year, he withdraws 100 plus the interest accu- mulated that year to reinvest into an account in the Bank of Dol Amroth, earning an annual effective rate of 10%. (a) (4 points) When would Denethor's funds at the Bank of Minas Tirith deplete? (b) (16 points) Determine the accumulated value of Denethor's investments at the Bank of Dol Amroth, immediately after he reinvests the last amount of withdrawals from the Bank of Minas Tirith
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