Posted by **Kelly** on Sunday, November 6, 2011 at 2:28pm.

You deposit $1000 in an account that pays 8% interest compounded semiannually. After 2 years, the interest rate is increased to 8.40% compounded quarterly. What will be the value of the account after 4 years?

- Finance -
**Henry**, Monday, November 7, 2011 at 8:18pm
Pt = Po(1+r)^n.

r = Rate per compounding.

n = The # of compounding periods.

2 yrs @ 8% + 2 yrs @ 8.4%.

Pt = !000(1.04)^4 + Po2(1.021)^8,

Pt = 1169.8586 + 1169.8586(1.021)^8,

Pt = 1169.8586 + 1381.4631 = $2551.32.

## Answer This Question

## Related Questions

- FINANCE - You deposit $2,000 in an account that pays 8% interest compounded ...
- value of money - A deposit of $2,000 earns interest at a rate of 14% compounded ...
- differential equation - If P(t) is the amount of dollars in a savings bank ...
- math - A deposit of $2,000 earns interest at a rate of 14% compounded quarterly...
- Alg 2 - Suppose you deposit a principal amount of p dollars in a bank account ...
- Alg2 - Help....Help... Suppose you deposit a principal amount of p dollars in a ...
- math - Phillip opened a savings account with an annual interest rate of 8% and ...
- Math - You deposit $1000 in an account at the Lifelong Trust Savings and Loan ...
- magh - suppose you put money into teo different bank accounts. In account #1 you...
- Math - If you deposit $900 semiannually in a bank which pays 6% interest ...

More Related Questions