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Stanford Simmons, who recently sold his Porsche, placed $10,000 in saving account paying annual compounded interest rate of 6%. a. Calculate the amount of money that will have accrued if he leaves the money in the bank for 1, 5, 8 and 15 years. b. If he moves his money into an account that pays 8% or one that pays 10%, rework part (a) using these new interest rates. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you have completed in this problem?
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Discussion Typical Reasoning
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