Question: 3 . Now suppose that Mr . Short has managed to negotiate an increase in the annual interest rate from 2 % to 2 .

3. Now suppose that Mr. Short has managed to negotiate an increase in the annual interest rate from 2% to 2.5%, starting in the beginning of the third year and from 2.5% to 3% starting in the beginning of the sixth year. Under these new conditions, what would be the account balance today?

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