You invest $1,000 at a variable rate of interest. Initially the rate is 4% compounded annually for the

first year, and the rate increases one-half of one percent annually for five years (year two's rate is
4.5%, year three's rate is 5.0%, etc.).

How much will you have in the account after five years?
A) $1,462 B) $1,359 C) $1,276 D) $1,338


C

Business

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