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Homework answers / question archive / Alma is planning to deposit $1,500 per year at ABC Bank for a period of 15 years, where the 15-year period is divided into 3 equal periods
Alma is planning to deposit $1,500 per year at ABC Bank for a period of 15 years, where the 15-year period is divided into 3 equal periods. The annual interest rate is expected to be 6% for the first period (year 1 to year 5), 10% for the second period (year 6 to year 10), then 14% for the last period (year 11 to year 15).
After that, Alma would like to deposit 40% of the interest earned from previous deposits in an investment with 8% return for a period of 4 years (year 16 to year 19). Find:
A.Total amount at the end of 15 years (In dollars)
B. Interest earned on deposits during the 19-year period (In dollars)
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