Question
please show work for the following A) Today, you invest $5,000 in a Fifth Third savings account that promises an average annual return of 2%
please show work for the following
A) Today, you invest $5,000 in a Fifth Third savings account that promises an average annual return of 2% for the first 10 years, 4% for the next 10 years, and 6% for the final 10 years. What is the future value of your investment at the end of the 30-year period?
B) Suppose that an initial investment of $500 grows to $100,000 over the course of 60 years. If the average annual interest rate is 10% for the first 20 years, what must be the average annual interest rate for the remaining 40 years?
C) Sixty years from now, how much additional money would I earn on an investment yielding 6% if I had deposited $1,000 today rather than waiting 10 years?
D) Thirty-five years from now my lump sum investment will be worth $140,512.18, of which $118,012.18 will be compound interest. Assuming my annual rate of return is 10%, how much additional compound interest would I have earned if I left the money invested for an additional twenty years?
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