Now, assume that Zoe's savings institution modifies the terms of her account and agrees to pay 7% in compound interest on her $900 balance. All other things being equal.

How much money will Zoe have in her account in 13 years?

Suppose Zoe had deposited another $900 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 7% but with quarterly compounding. Keeping everything else constant.

How much money will Zoe have in her account at this bank in 13 years?

Answer rating: 100% (QA)

To calculate the future value of Zoes account in the first scenario we can use the compound interest ... View the full answer