# Financial Math

An investment of \$2500 accumulates at 6% p.a compounded semi annually for 3 years. At that time, the interest rate is changed to 5% compounded monthly. How much is the investment worth 2 years after the change in interest rate? What is interest gained at the end of the 5 years.

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1. 2500 * (1.03^6) = 2985.13
now 2985.13 (1+ .05/12)^24 = 3298.39

3298.39 -2500 = 798.39

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posted by Damon
2. tisa received \$5200 on a deposit she made five years and eight months ago. The interest rate was is 6.7% p.a. compounded quaterly. How much interest was included in amount he received?

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posted by Riya

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