A woman deposits $9000 at the end of each year for 10 years in an account paying 3% interest compounded annually. (a) Find the final amount she will have on deposit. (b) Her brother-in-law works in a bank that pays 2% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account? (c) How much would she lose over 10 years by using her brother-in-law's bank?
A woman deposits $9000 at the end of each year for 10 years in an account paying 3% interest compounded annually. (a) Find the final amount she will have on deposit. (b) Her brother-in-law works in a bank that pays 2% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account? (c) How much would she lose over 10 years by using her brother-in-law's bank?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A woman deposits $9000 at the end of each year for 10 years in an account paying 3% interest compounded annually.
(a) Find the final amount she will have on deposit.
(b) Her brother-in-law works in a bank that pays 2% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account?
(c) How much would she lose over 10 years by using her brother-in-law's bank?
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