Posted by Thara! on Wednesday, April 21, 2010 at 10:13pm.
Calculate the future value of quarterly payments of $1200 for 5 years, if the rate of interest was 10% compounded quarterly for the first 2 years and will be 9% compounded quarterly for the last 3 years.

math help plz!  Thara!, Wednesday, April 21, 2010 at 10:16pm
I solved for both which i got
aFV= $10483.34
bFV= $16322.67
to get this answer i used this formula: FV=PMT((1+i)^n))1/i
i just don't know what do i do now?

Compound interest  MathMate, Wednesday, April 21, 2010 at 11:23pm
See answer to repost:
http://www.jiskha.com/display.cgi?id=1271904679

math help plz!  Reiny, Wednesday, April 21, 2010 at 11:34pm
At the end of the first 2 years, the value of the payments up to that point will be
1200 ( 1.025^8  1)/.025 = 10483.339 (you had that)
let's "move" that up to the end of 5 years at the new rate
value = 10483.339(1.0225^12) = 13691.765
Amount of the last 3 years' payments at year 5
= 1200( 1.0225^12  1)/.0225 = 16322.666
so total amount = 16322.666 + 13691.765 = $30 014.43

math help plz!  Reiny, Wednesday, April 21, 2010 at 11:36pm
Damon, didn't see that you already did this question.
Well, at least we agree down to the last penny, lol

math help plz!  Thara!, Thursday, April 22, 2010 at 12:37am
Thank u soo much...u both really helped me at the right time...i have final exam tomorrow...and i am now prepared..thanks again!!!
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