Ten years ago, you opened a savings account with a bank and deposited $40,000. The bank promised to pay you 5% interest every year. However, the bank lowered the interest rate to 4% after 5 years. How much do you have in your account now? Show all work.

Ten years ago, you opened a savings account with a bank and deposited $40,000. The bank promised to pay you 5% interest every year. However, the bank lowered the interest rate to 4% after 5 years. How much do you have in your account now? Show all work.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Question

Ten years ago, you opened a savings account with
a bank and deposited $40,000. The bank
promised to pay you 5% interest every year.
However, the bank lowered the interest rate to 4%
after 5 years. How much do you have in your
account now? Show all work.

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