NikulDon't upload image please Sam earned a total of $135 000 in 2012. He saved 35% of his total income and invested his savings in a bank that pays 2.25%interest compounded yearly. Calculate the total amount of money he has in the bank after 3 years.

Using the FV formula, we can determine the amount in the account in 3 years. The formula is as…

Answered: Sam earned a total of $135 000 in 2012.…

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

Section: Chapter Questions

Problem 1PS

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Sam earned a total of $135 000 in 2012. He saved 35% of his total income and invested his savings in a bank that pays 2.25% interest compounded yearly. Calculate the total amount of money he has in the bank after 3 years.