math help plz!

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.

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asked by Thara!
  1. 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?

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    posted by Thara!
  2. See answer to repost:
    http://www.jiskha.com/display.cgi?id=1271904679

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  3. 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

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

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    posted by Reiny
  5. 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!!!

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    posted by Thara!

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