The effective annual interest rate for this account

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At the end of each year, for 20 years, I deposit $1000 dollars into an account. The effective annual interest rate for this account (called account 1) is 5%. At the end of each year, i take the interest I am paid from this account and invest it into another account (called account 2) with an annual interest rate of 3%. After 20 years, what is the combined value of accounts 1 and 2?

Reference no: EM13873683

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