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What would be the third year future value

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Reference no: EM131819503

Problem

• Proficient-level: "A deposit of $350 earns the following interest rates: (a) 8 percent in the first year, (b) 6 percent in the second year, and (c) 5.5 percent in the third year. What would be the third year future value?" (Cornett, Adair, & Nofsinger, 2016).

• Distinguished-level: Explain why the future value is not calculated as the average of the annual interest rates.

Reference no: EM131819503

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