Maths Investments
posted by Ajay .
Kate is thinking about investing $60 000 for 4 years. She deposits her money into an account which earns interest paid semiannually at a rate of 7% p.a. After 2½ years, the interest rate drops to 5.6% p.a. and stays constant for the remainder of the investment period.
Use Excel or another suitable method to solve the problems below.
(a) How much interest was accrued in the second year of the investment?
(b) What will be the balance of Kate’s account at the end of the fourth year?

amount after the first 2½ years
= 60000(1.035)^7
= 76336.756
I will assume that the rate for the remaining 1½ of 5.6% is also compounded semiannually
amount at end of 4 years
= 76336.756(1.028)^3
= 82930.26 
Don't know how I got 7 as the exponent in the first part
of course it should have been 5 ( for 5 half years in 2 1/2 years)
Please make the necessary corrections. 
A woman has a total of $9,000 to invest. She invests part of the money in an account that pays 8% per year and the rest in an account that pays 11% per year. If the interest earned in the first year is $840, how much did she invest in each account?
Respond to this Question
Similar Questions

Math
Please check my work, thank you If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years? 
Calc
A person deposits money into a retirement account, which pays 7% interest compounded continuously, at a rate of $1000 per year for 20 years. Calculate: a. The balance of the account at the end of 20 years b. the amount of money actually … 
value of money
A deposit of $2,000 earns interest at a rate of 14% compounded quarterly. After two and a half years the interest rate changes to 13.5% compounded monthly. How much is in the account after six years? 
Maths (Investments)
Kate is thinking about investing $60 000 for 4 years. She deposits her money into an account which earns interest paid semiannually at a rate of 7% p.a. After 2½ years, the interest rate drops to 5.6% p.a. and stays constant for the … 
Math
A company invests $15,000.00 in an account that compounds interest annually. After two years, the account is worth $16,099.44. Use the function in which r is the annual interest rate, P is the principal, and A is the amount of money … 
Maths B
Kate is thinking about investing $45000 for 5 years. She deposits her money into an account which earns interest paid quarterly at a rate of 3.99% p.a. After 1½ years, Kate withdraws her investment (including interest) and deposits … 
Algebra Question~!
A company invests $15,000.00 in an account that compounds interest annually. After two years, the account is worth $16,099.44. Use the function in which r is the annual interest rate, P is the principle, and A is the amount of money … 
Algebra
A company invests $15,000.00 in an account that compounds interest annually. After two years, the account is worth $16,099.44. Use the function in which r is the annual interest rate, P is the principal, and A is the amount of money … 
math
Investor A deposits 1,000 into an account that earns an interest rate of 6% per annum compounded semiannually. On the same date, Investor B deposits 800 into an account that earns an interest rate of 8% per annum compounded monthly. … 
Algebra B
I can't figure this out, please help... A company invests $15,000.00 in an account that compounds interest annually. After two years, the account is worth $16,099.44. Use the function in which r is the annual interest rate, P is the …