Compound value​) Stanford​ Simmons, who recently sold his​ Porsche, placed ​$8,600 in a savings account paying annual compound interest of 6 percent.   a. Calculate the amount of money that will have accrued if he leaves the money in the bank for 2​, 5​, and 15 years. b. If he moves his money into an account that pays 8 percent or one that pays 10 ​percent, rework part ​(a​) using these new interest rates. c. What conclusions can you draw about the relationship between interest​ rates, time, and future sums from the calculations you have completed in this​ problem?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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(Compound
value​)
Stanford​ Simmons, who recently sold his​ Porsche, placed
​$8,600
in a savings account paying annual compound interest of
6
percent.
 
a. Calculate the amount of money that will have accrued if he leaves the money in the bank for
2​,
5​,
and
15
years.
b. If he moves his money into an account that pays
8
percent or one that pays
10
​percent, rework part
​(a​)
using these new interest rates.
c. What conclusions can you draw about the relationship between interest​ rates, time, and future sums from the calculations you have completed in this​ problem?
 
 
 
a. What is the accrued value of
​$8,600
in a savings account paying annual compound interest of
6
percent for
2
​years?
 
​$nothing  
​(Round to the nearest​ cent.)
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