Problem
A bank has three different types of account in which the interest rate depends on the amount invested. The ‘ordinary' account offers a return of 6% and is available to every customer. The ‘extra' account offers 7% and is available only to customers with $5000 or more to invest. The ‘superextra' account offers 8% and is available only to customers with $20 000 or more to invest. In each case, interest is compounded annually and is added to the investment at the end of the year. A person saves $4000 at the beginning of each year for 25 years. Calculate the total amount saved on the assumption that the money is transferred to a higher-interest account at the earliest opportunity.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.