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Laura Powers opened an account at Springfield Savings and Loan with an initial deposit of $12, 000. She kept the money in the account for 12 years without making any additional transactions on the account.
Question 1: The account earned 4% interest convertible semiannually for the first 5 years. After that time, the account earned 3.2% compounded continuously. How much interest did the account earn during the 12 years that Laura kept it in the account?
Question 2: At the end of the 12 year period, Laura closed the account and placed the money into an account at Shelbyville Bank. This new account earned an effective monthly interest rate of 0.45%. She kept the money in this account for a total of T years at which point the account balance was $26, 684.55. Find T. Round your answer to the nearest year.
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