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You deposit $ 2 comma 5 0 0 at the end of the year ( kequals 0 ) into an account that pays interest at
You deposit $ comma at the end of the year kequals into an account that pays interest at a rate of compounded annually. Upper A year after your deposit, the savings account interest rate changes to nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate; this time the interest rate becomes nominal interest compounded quarterly. Nine years after your deposit, the saving account changes its rate once more to compounded annually. a How much money should be in the savings account years after the initial deposit, assuming no further changes in the account's interest rate? b What interest rate, compounded annually, is equivalent to the interest pattern of the saving account in Parta over the entire year period?
You deposit $ comma at the end of the year kequals into an account that pays interest at a rate of compounded annually. Upper A year after your deposit, the savings account interest rate changes to nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate; this time the interest rate becomes nominal interest compounded quarterly. Nine years after your deposit, the saving account changes its rate once more to compounded annually.
a How much money should be in the savings account years after the initial deposit, assuming no further changes in the account's interest rate?
b What interest rate, compounded annually, is equivalent to the interest pattern of the saving account in Parta over the entire year period?
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