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Problem 5-5 (similar to) ​ (Compound value​) Stanford​ Simmons, who recently sold his​ Porsche, placed ​$9,800...

Problem 5-5 (similar to) ​

(Compound value​) Stanford​ Simmons, who recently sold his​ Porsche, placed ​$9,800 in a savings account paying annual compound interest of 6 percent.

a. Calculate the amount of money that will have accrued if he leaves the money in the bank for 2 ​, 5 ​, and 15 years.

b. If he moves his money into an account that pays 8 percent or one that pays 10 ​percent, 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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