Barbara Miikulainen makes two different deposits. He deposited €2,000 into the first fixed-interest account and €1,000 into the second variable-interest account. Both deposits were in the accounts for 11 years. Withholding tax in Finland is 30%.
a) The interest rate of the fixed interest account was 1.8%. How much money was in the account at the end of the deposit period?
b) After the deposit period ended, the balance of the variable interest account was €1326.24. What was the average annual net interest rate? And what would have been the interest rate announced by the bank in that case, if the deposit had been in a fixed-interest account?
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