math

You deposit ​$2000

in an account that pays 7
​%
interest compounded semiannually. After 2

​years, the interest rate is increased to 7.32
​%
compounded quarterly. What will be the value of the account after a total of 4

​years?

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  1. amount after first 2 years = 2000(1.035)^4
    then for the next 2 years we have i = .0732/4 = .0183
    and n = 8 , number of quarters in 2 years

    final amount = 2000(1.035)^4 * (1.0183)^8
    = .....

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  2. You deposit2000 ​$ in an account that pays6 ​% interest compounded semiannually. After ​years, the interest rate is increased to6.84 ​% compounded quarterly. What will be the value of the account after a total of ​2years?

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