Susan deposits $2000 into a bank account that pays interest at the following rates: • an effective rate of interest of 4% per annum for the first three months, • an effective rate of interest of 2.5% per annum for the following eight months, and • an effective rate of interest of 3% per annum thereafter. Calculate, correct to 2 decimal places, the accumulated value of Susan's deposit after exactly 6 months have elapsed. (a) (b) Calculate the least integer number of months she must leave that $2000 in the account for it to grow to at least $2200.
Susan deposits $2000 into a bank account that pays interest at the following rates: • an effective rate of interest of 4% per annum for the first three months, • an effective rate of interest of 2.5% per annum for the following eight months, and • an effective rate of interest of 3% per annum thereafter. Calculate, correct to 2 decimal places, the accumulated value of Susan's deposit after exactly 6 months have elapsed. (a) (b) Calculate the least integer number of months she must leave that $2000 in the account for it to grow to at least $2200.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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