A saver deposits 8,450 in a savings account with an interest rate of 4.2%; after...

 

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A saver deposits € 8,450 in a savings account with an interest rate of 4.2%; after two years, the rate has fallen to 2.4%; then, four years later, it is lowered again to 1.80%. Three years later, the saver gets his savings back. a. What is the saver's final capital? b. What is the average annual rate of return? A saver deposits € 8,450 in a savings account with an interest rate of 4.2%; after two years, the rate has fallen to 2.4%; then, four years later, it is lowered again to 1.80%. Three years later, the saver gets his savings back. a. What is the saver's final capital? b. What is the average annual rate of return?

Answer rating: 100% (QA)

To calculate the savers final capital we need to consider the interest earned over the different per... View the full answer