You place $1,000 in a savings account today that pays 8% interest compounded annually for the first three years, and 2% interest compounded annually for the next following two years, and then 4% thereafter. How much will you have in the account six years from today? Hints: Calculate the FV of the 1,000 that you put for three years @ 8%, and consider the FV as a new PV that will be put for two years @2%, then repeat again for the one year @ 4%, and get the new FV at point 6.

1,000 2% PER YEAR 4% PE R YEAR

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0123456 8% PER YEAR