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 semiannually, 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 = Semiannual
@ 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
 Algebra  Show how you substitute the values into the formula, then use your ...
 Business maths  An amount of k20.000 is invested for 5 years in a credit union ...
 Finance  You deposit $1000 in an account that pays 8% interest compounded ...
 Math  How much must you deposit in an account that pays 6% semiannual interest...
 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 ...
 math(compunded interest )  6.how long will it take for a sum of money to ...
 math  A deposit of $2,000 earns interest at a rate of 14% compounded quarterly...
 Math  How much must you deposit in an account that pays 6% semiannual ...
 Algebra  Need help with these 2 please 19. Nancy invests $100 in one account ...
More Related Questions