Determine the total interest that was earned

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Reference no: EM131509156

On January 1, 2000, $11, 642 was deposited into an account that earns 6.62% interest compounded monthly. On January 1, 2009, $1, 900 was withdrawn from the account and the bank changed the interest rate to 4.32% compounded monthly. On January 1, 2012, $2, 300 was deposited into the account and the interest rate was lowered to 3.26% compounded monthly. Do the following:

A. If no other deposits, withdrawals, or rate changes occur, how much money did the account have on January 1, 2017? Use appropriate formulas to help you solve this problem; do not use the TVM Solver. Show all the steps needed to solve this problem.

B. Determine the total interest that was earned from January 1, 2014 to January 1, 2017? Use appropriate formulas to help you solve this problem; do not use the TVM solver. Show how you arrived at your answer.

Reference no: EM131509156

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