Related to Checkpoint 5.2) (Future value) Leslie Mosallam, who recently sold her Porsche, placed $8600 in a savings account paying annual compound interest of 7 percent.
a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 3,7, and 17 year(s).
b. Suppose Leslie moves her money into an account that pays 9 percent or one that pays 11 percent. Rework part (a) using 9 percent and 11 percent.
c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did? Question content area bottom
a. After placing $8600 in a savings account paying annual compound interest of 7 percent, the amount of money that will accumulate if Leslie leaves the money in the bank for 3 year(s) is $ enter your response here. (Round to the nearestcent.)
If she leaves the money in the bank for 7 years, the amount of money that will accumulate is $ enter your response here.(Round to the nearest cent.)
If she leaves the money in the bank for 17 years, the amount of money that will accumulate is $ enter your response here. (Round to the nearest cent.)
b. If Leslie moves her money into an account that pays 9 percent compounded annually for 3 year(s), the amount of money that will accumulate is $ enter your response here.(Round to the nearest cent.)
If Leslie moves her money into an account that pays 9 percent compounded annually for 7 years, the amount of money that will accumulate is $ enter your response here. (Round to the nearest cent.)
If Leslie moves her money into an account that pays 9 percent compounded annually for 17 years, the amount of money that will accumulate is $enter your response here. (Round to the nearest cent.)
If Leslie moves her money into an account that pays 11 percent compounded annually for 3
year(s), the amount of money that will accumulate is enter your response here.
(Round to the nearest cent.)
If Leslie moves her money into an account that pays 11 percent compounded annually for 7 years, the amount of money that will accumulate is
$enter your response here.
(Round to the nearest cent.)
Part 9
If Leslie moves her money into an account that pays
11
percent compounded annually for
17
years, the amount of money that will accumulate is
$enter your response here.
(Round to the nearest cent.)
Part 10
c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did? There is a▼positive /negative
relationship between the interest rate used to compound a present sum and the future value of that sum. There is a
positive/negative relationship between the number of years for which the compounding continues and the future value of that sum. (Select from the drop-down menus.)