Posted by **Annie** on Wednesday, January 11, 2012 at 5:14pm.

Dieter deposists $ 9000 inoan account that pays 10%/a compunded quarterly, after 3 threes the inerest rate changes to 9%/a compounded semi-annually, calculate the value of his investments 2 years after this change

- Math -
**Henry**, Thursday, January 12, 2012 at 6:53pm
I'm assuming you mean the rate changes to 9 % after 3 years.

Pt = Po(1+r)^n.

r = (10%/4) / 100% = 0.025 = Quarterly % rate exprssed as a decimal.

n = 3 yrs * 4 comp / yr. = 12 Comp. periods.

Pt = $9000(1.025)^12 = $12,104 After 3

years.

r = (9%/2) / 100% = 0.045 = Semi-annual

@ rate expressed as a decimal.

n = 2 Comp./yr * 2 yrs = 4 Comp.periods

Pt = $9000(1.045)^4 = $10.732.67.

Total value = $12,104.00 + 10,732.67 =

$22,836.67.

- Math -
**Henry**, Thursday, January 12, 2012 at 7:04pm
Correction:

Pt = $12,104(1.045)4 = $14,434.25. =

Total value after 5 years.

- Math -
**Sydney**, Tuesday, January 8, 2013 at 9:15pm
Correction:

Accumalated Value = $12,104(1.045)^4

= $14,434.25.

(total value after 5 years

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