A A Customer David Broke Of First National Bank Fnb Deposits 10 000 With Fnb For 5 3312430

(a) A customer, David Broke, of First National Bank (FNB) deposits $10,000 with FNB for 5 years. What is the annualized interest rate that the bank must pay if David Broke’s deposit grows to $12,166.53 at the end of the five-year term? (b) Suppose the bank decides to pay 1.5% interest twice a year, what will be the future value amount that David Broke should receive?