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Homework answers / question archive / How much would be in your savings account in 11 years after depositing $150 today, if the bank pays 7 percent per year?Recalculate the savings account balance, using a 6 percent interest rate, and again, using an 8 percent interest rate
How much would be in your savings account in 11 years after depositing $150 today, if the bank pays 7 percent per year?Recalculate the savings account balance, using a 6 percent interest rate, and again, using an 8 percent interest rate.
I have the first part but how do it for the 8 and the 6
Computation of the future value when the interest rate 7%:-
FV = PV*(1+rate)^n
= $150*(1+7%)^11
= $150*2.10485
= $315.73
Computation of the future value when the interest rate 6%:-
FV = PV*(1+rate)^n
= $150*(1+6%)^11
= $150*1.8983
= $284.74
Computation of the future value when the interest rate 8%:-
FV = PV*(1+rate)^n
= $150*(1+8%)^11
= $150*2.33164
= $349.75
