1. Show your understanding of the time value of money by solving these problems. a. You deposit $200 in an account earning 2.6% a year and compounding annually. How much will be in the account after 20 years? b. You deposit the same amount in an account earning 2.6% annually that does not compound. How much is the account worth after 20 years?

1. Show your understanding of the time value of money by solving these problems. a. You deposit $200 in an account earning 2.6% a year and compounding annually. How much will be in the account after 20 years? b. You deposit the same amount in an account earning 2.6% annually that does not compound. How much is the account worth after 20 years?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Show your understanding of the time value of money by solving these problems.
a. You deposit $200 in an account earning 2.6% a year and compounding annually. How much
will be in the account after 20 years?
b. You deposit the same amount in an account earning 2.6% annually that does not compound.
How much is the account worth after 20 years?
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