Posted by **Thara!** on Wednesday, April 21, 2010 at 10:51pm.

Calculate teh 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.

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 dont know what i should do now?

- Math! plz help! -
**MathMate**, Wednesday, April 21, 2010 at 11:21pm
$10483.34 is the future value of the first two years of investment at the end of the second year.

$16322.67 is the future value of the 3rd, 4th and 5th years of investment at the end of the fifth year (end of term).

The only thing left to do is to calculate the future value of the first two years of investment at the end of term (5th year) at the rate of 9% pa, or 2.25% per quarter.

FV=10483.34*(1.0225)^(4 quarters * 3 years)

= 10483.34*(1.0225)^12

= $13691.76

So the total future value at end of term (5 years) is:

$13691.76+16322.67

=$30014.43

Check my work.

- Math! plz help! -
**Thara!**, Thursday, April 22, 2010 at 12:36am
Thank u soo much...u really helped me at the right time...i have final exam tomorrow...and i am now prepared..thanks again!!!

## Answer This Question

## Related Questions

- math help plz! - Calculate teh future value of quarterly payments of $1200 for 5...
- math - Steve wants to have $25000 in 25 years, he can only get 3.2% interest ...
- Math - Find the future value of an ordinary annuity of $70 paid quarterly for 5 ...
- math - Find the future value of an annuity if you invest $200 quarterly for 20 ...
- math - serena wants to borrow $15000 and pay it back in 10 years. the bank ...
- Math - Serena wants to borrow $15 000 and pay it back in 10 years. Interest ...
- Math - A $20,000 loan is to be amortized for 10 years with quarterly payments of...
- compounded interest - calculate the future value of an investment of $8,500 if ...
- finite math - Find the present value of an ordinary annuity of $600 payments ...
- Mathematics and investment - 1. Angelo wants to renovate his house in 3 years. ...

More Related Questions