Your local bank is offering a new type of retirement savings account. An initial deposit is made to the account when it is opened. This money and any accumulated interest must be left in the account for 26 years. No additional deposits can be made. On the day the account is opened and on each annual anniversary of the initial deposit, the account balance is reviewed and the following terms apply: ง 1. If the account balance is less than or equal to $20,000, interest for the next annual period is 7%/year compounded annually. 2. If the account balance is greater than $20,000 but less than or equal to $40,000, interest for the next annual period is 10%/year compounded quarterly. 3. If the account balance is greater than $40,000, interest for the next annual period is 12%/year compounded monthly. You decide to open an account under these terms today with $9,000. How much money will you withdraw when the account is closed 26 years from today? $ (Do all calculations to 5 decimal places and round final answer to nearest whole dollar. Tolerance is± 5.)
Your local bank is offering a new type of retirement savings account. An initial deposit is made to the account when it is opened. This money and any accumulated interest must be left in the account for 26 years. No additional deposits can be made. On the day the account is opened and on each annual anniversary of the initial deposit, the account balance is reviewed and the following terms apply: ง 1. If the account balance is less than or equal to $20,000, interest for the next annual period is 7%/year compounded annually. 2. If the account balance is greater than $20,000 but less than or equal to $40,000, interest for the next annual period is 10%/year compounded quarterly. 3. If the account balance is greater than $40,000, interest for the next annual period is 12%/year compounded monthly. You decide to open an account under these terms today with $9,000. How much money will you withdraw when the account is closed 26 years from today? $ (Do all calculations to 5 decimal places and round final answer to nearest whole dollar. Tolerance is± 5.)
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Please correct answer and don't used hand raiting
Transcribed Image Text:Your local bank is offering a new type of retirement savings account. An initial deposit is made to
the account when it is opened. This money and any accumulated interest must be left in the account
for 26 years. No additional deposits can be made. On the day the account is opened and on each
annual anniversary of the initial deposit, the account balance is reviewed and the following terms
apply:
ง
1. If the account balance is less than or equal to $20,000, interest for the next annual period is
7%/year compounded annually.
2. If the account balance is greater than $20,000 but less than or equal to $40,000, interest for
the next annual period is 10%/year compounded quarterly.
3. If the account balance is greater than $40,000, interest for the next annual period is 12%/year
compounded monthly.
You decide to open an account under these terms today with $9,000. How much money will
you withdraw when the account is closed 26 years from today?
$
(Do all calculations to 5 decimal places and round final answer to nearest whole dollar. Tolerance is±
5.)
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