Current Attempt in Progress Your answer is incorrect. Ben deposits $3,000 now into an account that earns 7 percent interest compounded annually. He then deposits $1,000 per year at the end of the first and second years. How much will the account contain 10 years after the initial deposit? $ Round entry to the nearest dollar. Tolerance is 14. Click here to access the TVM Factor Table Calculator

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.