- Interest Rates and the Cost of Debt
Amount in three years from now
You just deposited $2,500 in a bank account that pays a 12% nominal interest rate, compounded quarterly.
If you also add another $5,000 to the account on year (12 months) from now and another $7,500 to the account two years from now, how much will be in the account three years (12 quarters) from now?
Please also show:
The solution explains how to calculate the balance in the account in three years from now