Leslie masala who recently sold her porches placed $11, 000 in a saving account

Question

Leslie masala who recently sold her porches placed $11, 000 in a saving account paying annual compound of 5 percent. calculate the amount of money that accumulate if Leslie leaves the money in the bank for 3, 7 and 17 year(s). suppose Leslie moves her money into an account that 7 percent one that pays 9 percent rework part using 7 percent and 9 portent. what can you draw about the relationships between rates time and future some from the you just did? after playing $11, 000 in a saving account paying annual compound interest of 5 percent that will account if leis the money in the bank for 3 years in $ (round to the nearest cent).

Explanation / Answer

a) at the rate 5% p.a, we gave sum after 3, 7, and 17 years as:

A1 = 11000 (1+0.05)^3= 12733.88

A2 = 11000 (1+0.05)^7 = 15478.10

A3 = 11000 (1+0.05)^17= 25212.20

b) at rate 7% or 9% , we have,

A1 = 11000 (1+0.07)3 = 13475.47

A2 = 11000 (1+0.07)7 = 17663.60

A3 = 11000 (1+0.07)17 = 34746.97

c)

A1 = 11000 (1+0.09)3 = 14245.32

A2 = 11000 (1+0.09)7 = 20108.43

A3 = 11000 (1+0.09)17 = 47603.97

As the rate increases, or the time increases, the future amount also increases.

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