When you were born your parents set up a bank account in your name with an initial investment of $5,000. You are turning 21 in a few days and will have access to all your funds. The account was earning 7.3 percent for the first seven years, but then the rates went down to 5.5 percent for six years. The economy was doing well in the early 2000s, and your account earned 8.2 percent three years in a row. Unfortunately, the next two years you earned only 4.6 percent. Finally, as the economy recovered, your return jumped to 7.6 percent for the last three years.

a. How much money was in your account before the rates went down drastically (end of year 16)?

b. How much money is in your account now (end of year 21)?

c. What would be the balance now if your parents made another deposit of $1,200 at the end of year 7?