Bob has deposited $10,000 at the end of each year into a saving account for the last 12 years. His deposits earned interest at 4% for the first 4 years; at 5% for the next 3 years; and at 6% for the last 5 years. (a) What is the accumulated value in his saving account at the end of year 4? (b) What is the accumulated value in his saving account at the end of year 7? (c) What is the accumulated value in his saving account at the end of year 12? (d) What is the total interest earned for the 12 years?
Bob has deposited $10,000 at the end of each year into a saving account for the last 12 years. His deposits earned interest at 4% for the first 4 years; at 5% for the next 3 years; and at 6% for the last 5 years. (a) What is the accumulated value in his saving account at the end of year 4? (b) What is the accumulated value in his saving account at the end of year 7? (c) What is the accumulated value in his saving account at the end of year 12? (d) What is the total interest earned for the 12 years?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 10PROB
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Transcribed Image Text:Bob has deposited $10,000 at the end of each year into a saving account for the
last 12 years. His deposits earned interest at 4% for the first 4 years; at 5% for the next 3
years; and at 6% for the last 5 years.
(a) What is the accumulated value in his saving account at the end of year 4?
(b) What is the accumulated value in his saving account at the end of year 7?
(c) What is the accumulated value in his saving account at the end of year 12?
(d) What is the total interest earned for the 12 years?
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