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You deposit $80,000 now (i.e. t=0 ) in a savings account that gives you 12% p.a. interest compounded monthly. Exactly one year from today (i.e.
You deposit $80,000 now (i.e. t=0 ) in a savings account that gives you 12% p.a. interest compounded monthly. Exactly one year from today (i.e. t=1 ), you notice that the same account balance is now $90,146 and that the interest rate has since changed to 8% p.a. (the account still compounds interest monthly); you decide to not touch the money in the account but leave it in the same account to continue to earn interest for another six years. How much money will you have in your account seven years from now assuming the interest remains unchanged at 8% p.a. compounded monthly? Round your answer to two decimal places. A. $84,921.61 B. $145,450.77 C. $199,284.09 D. $176,854.51 E. $184,537.82
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