# Math

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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 -

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 -

Correction:

Pt = \$12,104(1.045)4 = \$14,434.25. =
Total value after 5 years.

• Math -

Correction:

Accumalated Value = \$12,104(1.045)^4
= \$14,434.25.

(total value after 5 years

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