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Leslie Mosallam, who recently sold her Porsche, placed $8,800 in a savings account paying annual compound interest of 5 percent.
Problem a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 2, 6, and 16 year(s).
Problem b. Suppose Leslie moves her money into an account that pays 7 percent or one that pays 9 percent. Rework part (a) using 7 percent and 9 percent.
Problem c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did?
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