non-interest-bearing Suppose that $1000 is misplaced in a checking account and forgotten. Each year, the bank...

 

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non-interest-bearing Suppose that $1000 is misplaced in a checking account and forgotten. Each year, the bank imposes a service charge of 1.5%. After 20 years, how much remains of the $1000? [Hint: Recall the notion of negative interest rates.] non-interest-bearing Suppose that $1000 is misplaced in a checking account and forgotten. Each year, the bank imposes a service charge of 1.5%. After 20 years, how much remains of the $1000? [Hint: Recall the notion of negative interest rates.]

Answer rating: 100% (QA)

The 15 service charge on the checking account represents a negative interest rate so we ... View the full answer