Andover Bank and Lowell Bank each sell one-year certificates of deposit (CDs). The interest rates on these CDs are given in the table below for a three-year period. Bank 2019 2020 2018 2% 2% 11% Andover Bank Lowell Bank 5% 5% 5% Suppose you deposit $1,000 in a CD in each bank at the beginning of 2018. At the end of 2018, you take your $1,000 and any interest earned and invest it in a CD for the following year. You do this again at the end of 2019. At the end of 2020, the interest over this three-year period at Andover Bank is $. (Enter your response rounded to the nearest penny.)

Andover Bank and Lowell Bank each sell one-year certificates of deposit (CDs). The interest rates on these CDs are given in the table below for a three-year period. Bank 2019 2020 2018 2% 2% 11% Andover Bank Lowell Bank 5% 5% 5% Suppose you deposit $1,000 in a CD in each bank at the beginning of 2018. At the end of 2018, you take your $1,000 and any interest earned and invest it in a CD for the following year. You do this again at the end of 2019. At the end of 2020, the interest over this three-year period at Andover Bank is $. (Enter your response rounded to the nearest penny.)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter12: Money And Banking

Section: Chapter Questions

Problem 3E

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