Annuity with Change in Interest Rate

question 109

Essay

Annuity with change in interest rate.
Jan Green established a savings account for her son's college education by making annual deposits of $9,000 at the beginning of each of six years to a savings account paying 8%. At the end of the sixth year, the account balance was transferred to a bank paying 10%, and annual deposits of $9,000 were made at the end of each year from the seventh through the tenth years. What was the account balance at the end of the tenth year?

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Definitions:

Kelley's Attribution Theory

A theory that explains how individuals deduce the causes of other people's behavior by attributing it to internal dispositions or external situations.

Dispositional Attribution

The tendency to attribute people's behaviors to their internal qualities, traits, or character, rather than to situational factors.

Aggressive

A behavior characterized by being ready or likely to attack or confront; involving forceful actions or tactics.

False Consensus Effect

The cognitive bias to overestimate how much other people share our beliefs, attitudes, and behaviors.