Your Godmother established a $3,000 bank account for you when you were born.For the first 10 years the interest rate on the account was 10%.It has been 7.5% since then.You are now 25 years old and would like to withdraw the funds.How much money do you have?
A) $23,023.70
B) $18,295.02
C) $32,504.12
D) $25,828.32
E) $23,445.80

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc27_e5fd_a768_4b702eeed0d8_TB2902_00 FV = 3,000 × 11ea7fdb_fc27_e5fe_a768_05f825655965_TB2902_00 × 11ea7fdb_fc28_0d0f_a768_7bcea157e519_TB2902_00 = $23,023.70 Using a financial calculator: N = 10, I/Y = 10, PV = -3,000, PMT = 0, cpt FV = $7,781.23 N = 15, I/Y = 7.5, PV = -7,781.23, PMT = 0, cpt FV = $23,023.70

Your Godmother Established a $3,000 Bank Account for You When