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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