Federal accountants conducted, from 1971 until 2014, the Netherland benchmark interest rate averaged 6.05%.
a) Suppose €1000 is invested for 1 year in a CD earning 6.05% interest, compounded monthly. Find the future value of the account.
b) In March of 1980, the benchmark interest rate reached a high of 20%. Suppose the €1000 from part (a) was invested in a 1-year CD earning 20% interest, compounded monthly. Find the future value of the account.
c) In December of 2009, the benchmark interest rate reached a low of 0.25%. Suppose the €1000 from part (a) was invested in a 1-year CD earning 0.25% interest, compounded monthly. Find the future value of the account.
