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Stanford? Simmons, who recently sold his? Porsche, placed ?$10,600 in a savings account paying annual compound interest of 5 percent.
a. Calculate the amount of money that will have accrued if he leaves the money in the bank for 3?, 6?, and 16 years.
b. If he moves his money into an account that pays 7 percent or one that pays 9 ?percent, rework part a using these new interest rates.
c. What conclusions can you draw about the relationship between interest? rates, time, and future sums from the calculations you have completed in this? problem?
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