In June
2007
, Manuel set up a TDA to save for retirement. He agreed to have
$
175
deducted from each of his monthly paychecks. The annuity’s interest rate was allowed to change once each year.
a. In
2007
, the interest rate was
5.25
%
. Find the account balance in June
2008
.
b. In
2008
, the interest rate was
3.8
%
. Find the account balance in June
2009
. To do this, think of the June
2008
account balance as a lump sum that earns compound interest.
c. In
2009
, the interest rate was
2.2
%
. Find the account balance in June
2010
.