Compounding with Different Interest Rates a Deposit of $500 Earns

question 81

Multiple Choice

Compounding with Different Interest Rates A deposit of $500 earns the following interest rates:
5 percent in the first year
6 percent in the second year,and
8 percent in the third year.
What would be the third year future value?

• A)$527.14
• B)$595.00
• C)$601.02
• D)$1595.00

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Definitions:

Mutual Savings Bank

A financial institution owned by its depositors, primarily engaging in saving accounts and residential mortgage lending.