Deposits-withdrawals or rate changes occur

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Reference no: EM131057964

On january 1, 2000, $10500 was deposited into an account that earns 5.06% interest compounded monthly. On January 1, 2007, $2500 was withdrawn from the account and the bank changed the interest rate to 4.79% compounded monthly. On January 1, 2012, $2100 was deposited into the account and the interest rate was lowered to 3.42% compounded monthly.

?a. If no other deposits, withdrawals, or rate changes occur, how much money will be in the account on January 1, 2016? Use only appropriate formulas to helo you solve this problem. Show all the steps needed to solve this problem.

b. Estimate the total interest that will be earned from the time that initial deposit was made to January 1, 2016? Show how you arrived at your answer.

Reference no: EM131057964

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