Homework Help: Math

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

Answer this Question

Related Questions

Math - Bermie deposited $ 4000 into an account that pays 45/a compounded ...
math - Bernie deposited $ 4000 into an account that pays 45%/a compounded ...
consumer math - Jim opened an account with $400. The account pays three percent...
Math - Serena wanst to borrow $15 000 an pay it back in 10 years. Interest rates...
Finance - You deposit $1000 in an account that pays 8% interest compounded ...
math - an account which pays 14% compounded quarterly, what is the effective ...
math - A deposit of $2,000 earns interest at a rate of 14% compounded quarterly...
FINANCE - You deposit $2,000 in an account that pays 8% interest compounded ...
college math - Cindy deposited $1,000 in an account that pays 12% interest ...
Math - A woman has a total of $9000 to invest. She invests part of the money in ...

For Further Reading

First Name:
School Subject:
Answer: