Example. Suppose that the threshold is $1,000, the smaller interest rate is 0.9%, the larger interest rate is 1.5%, you invest $990, and you want to trace this amount for 3 years.
In the first year, the amount is smaller than the threshold, so your effective interest rate is 0.9%. This means that at the end of Year 1, you earn an additional amount of $990 * (0.9 / 100) = $8.91. Thus, at the end of Year 1, your deposit will be equal to $990 + $8.91 = $998.91.
The resulting amount is still smaller than the threshold, so in Year 2, your effective interest rate is still 0.9%. This means that at the end of Year 2, you earn an additional amount of $998.91 * (0.9 / 100) = $8.99. Thus, at the end of Year 2, your deposit will be equal to $998.91 + $8.99 = $1,007.90.
This amount is already larger than the threshold, so your effective interest rate is 1.5%. This means that at the end of Year 3, you earn an additional amount of $1,007.90 * (1.5 / 100) = $15.12. Thus, at the end of Year 1, your deposit will be equal to $1,007.90 + $15.12 = $1,023.02.
You should present the results of the computations in a nice and clear form, e.g., as follows:
Report on John Johnson's saving account: Original amount 990.00 Year 1: effective interest rate 0.9% amount gained 8.91 amount at the end of Year 998.91 Year 2: effective interest rate 0.9% amount gained 8.99 amount at the end of Year 1007.90 Year 3: effective interest rate 1.5% amount gained 15.12 amount at the end of Year 1023.02 Thanks for using our bank!When it is due. The program is due at the beginning of the first lab section on the week of October 6, i.e.: