Time value of money:

An amount of $12,000 is invested in a bank account for two and a half years.  The account pays interest of 6% per annum compounded monthly for the first 18 months, then at 7% per annum compounded monthly for a year. How much is in the account at the end of this time if no withdrawals are made?

Answer rating: 100% (QA)

To solve this problem well first calculate the amount of money in the account after 18 months with a... View the full answer