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Compounding with Different Interest Rates a Deposit of $500 Earns

Question 81

Multiple Choice

Compounding with Different Interest Rates A deposit of $500 earns the following interest rates:
5 percent in the first year
6 percent in the second year,and
8 percent in the third year.
What would be the third year future value?


A) $527.14
B) $595.00
C) $601.02
D) $1595.00

Correct Answer:

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