math help plz!

posted by .

Calculate the 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.

  • math help plz! -

    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 don't know what do i do now?

  • Compound interest -

    See answer to repost:
    http://www.jiskha.com/display.cgi?id=1271904679

  • math help plz! -

    At the end of the first 2 years, the value of the payments up to that point will be
    1200 ( 1.025^8 - 1)/.025 = 10483.339 (you had that)

    let's "move" that up to the end of 5 years at the new rate
    value = 10483.339(1.0225^12) = 13691.765

    Amount of the last 3 years' payments at year 5
    = 1200( 1.0225^12 - 1)/.0225 = 16322.666

    so total amount = 16322.666 + 13691.765 = $30 014.43

  • math help plz! -

    Damon, didn't see that you already did this question.
    Well, at least we agree down to the last penny, lol

  • math help plz! -

    Thank u soo much...u both really helped me at the right time...i have final exam tomorrow...and i am now prepared..thanks again!!!

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math! plz help!

    Calculate the 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 …
  2. compounded interest

    calculate the future value of an investment of $8,500 if it is to be invested for 9 years at an interest rate of 6.1%, compounded quarterly.
  3. Math

    Serena wants to borrow $15 000 and pay it back in 10 years. Interest rates are high, so the bank makes her two offers: • Option 1: Borrow the money at 10%/a compounded quarterly for the full term. • Option 2: Borrow the money at …
  4. finite math

    Find the present value of an ordinary annuity of $600 payments each made quarterly over 5 years and earning interest at 4% per year compounded quarterly.
  5. Mathematics and investment

    1. Angelo wants to renovate his house in 3 years. He estimates the cost 300,000. How much must Angelo invest now at 8% compounded quarterly in order to have 300,000 3 years from now. 2. Angelo Ancis want to save 500,000 in 5.5 years …
  6. math

    serena wants to borrow $15000 and pay it back in 10 years. the bank gives her 2 options 1: borrow the money at 10% compounded quarterly for the full term option 2: borrow the money at 12%compounded quarterly for 5 years and after 5 …
  7. math

    Steve wants to have $25000 in 25 years, he can only get 3.2% interest compounded quarterly. his bank will guarantee the rate for either 5 or 8 years in 5 years he can get 4% compounded quarterly for the remainder of the term in 8 years …
  8. math

    Find the future value of an annuity if you invest $200 quarterly for 20 years at 5% interest compounded quarterly.
  9. Math

    Find the future value of an ordinary annuity of $70 paid quarterly for 5 years, if the interest rate is 10%, compounded quarterly. (Round your answer to the nearest cent.)
  10. Math

    A $20,000 loan is to be amortized for 10 years with quarterly payments of $763.55. If the interest rate is 9%, compounded quarterly, what is the unpaid balance immediately after the sixth payment?

More Similar Questions