Explain why the amount of interest earned increases

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Reference no: EM13919805

Please show the work to the following question:

You have $1,500 to invest today at 7% interest compounded annually.

a) Find out how much will you have accumulated in the account at the end of number of

1. 3 years

2. 6 years

3. 9 years b)

Use your findings in part a to calculate the amount of interest earned in

1. the first 3 (years 1to 3)

2. the second 3 years (years 4 to 6)

3. the third 3 years (years 7 to 9)

c) Compare and contrast your findings in part b. Explain why the amount of interest earned increases in each succeeding 3-year period.

Reference no: EM13919805

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