Question
Stanford Simmons, who recently sold his Porsche, placed $9,400 in a savings account paying annual compound interest of 4 percent. A. What is the accrued
Stanford Simmons, who recently sold his Porsche, placed $9,400 in a savings account paying annual compound interest of 4 percent.
A. What is the accrued value of $9,400 in a savings account paying annual compound interest of 4 percent for 15 years? (round to nearest cent)
B. If the money was moved to an account that pays 6 percent, what is the accrued value of $9,400 in the account for 5 years? (round to nearest cent)
C. If the money was moved to an account that pays 6 percent, what is the accrued value of $9,400 in the account for 15 years? (round to nearest cent)
D. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you have completed in this problem?
There is a ["Positive"/ "Negative"] relationship between both the interest rate used to compound a present sum and the number of years for which the compounding continues and the future value of that sum.
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