FINANCE

You deposit $2,000 in an account that pays 8% interest compounded semiannually. After 4 years, the interest rate is increased to 8.28% compounded quarterly. What will be the value of the account after 4 more years? (Do not round until the final answer. Then, round to the nearest cent.)

  1. 👍
  2. 👎
  3. 👁
  1. Pt = Po(1+r)^n.

    r = (8%/2) / 100% = 0.04 = Semi-annual
    % rate expressed as a decimal.

    n = 2 comp./yr * 4yrs = 8 Compounding
    periods.

    Pt = 2000(1.04)^8 = 2737.138101 after 4 yrs.

    r = (8.28%/4) / 100% = 0.0207 = QPR
    expressed as a decimal.

    n = 4 comp./yr * 4 yrs.=16 Compounding periods.

    Pt = 2737.138101(1.0207)^16 = $3798.98.

    1. 👍
    2. 👎
  2. You deposit $1000 in an account that pays 6% interest compounded semiannually. After 3years, the interest rate is increased to 6.44% compounded quarterly. What will be the value of the account after a total of 6 years?

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math help! Check my answers ASAP!

    1. Which graph most likely describes the distance a person walks in a 24-hour period? (1 point) a. Graph IV** b. Graph II c. Graph I d. Graph III 2. A car traveling at 25 mi/h accelerates to 48 mi/h over the first 5 seconds. It

  2. algebra

    Four different accounts are described below. Order the accounts according to their values after 20 years, from greatest to least. 1.You deposit 1500$ in an account that earns 5% annual interest compounded quarterly. 2. You deposit

  3. Business Math

    Shelley Katz deposited $30,000 in a savings account at 5% interest compounded semiannually. At the beginning of year 4, Shelley deposits an additional $80,000 at 5% interest compounded semiannually. At the end of 6 years, what is

  4. math

    You deposit $2200 in an account that pays 3% annual interest. After 15 years, you withdraw the money, what is the balance if the interest is compounded quarterly? so I figure you would get 2650.00 help please

  1. Business Math

    Lee Holmes deposited $ 15,000 in a new savings account at 9% interest compounded semiannually, At the beginning of year 4, Lee deposites an additional $40000 at 9% interest compounded semiannually. At the end of the 6 years what

  2. alegbra 2

    Earning interest- You deposit $1000 in an account that pays 6% annual interest compounded continuously. Find the balance at the end of 2 years.

  3. PRE-CALCULUS

    . Sam won $150,000 in the Michigan lottery and decides to invest the money for retirement in 20 years. Find the accumulated value for Sam’s retirement for each of his options: (a) a certificate of deposit paying 5.4% compounded

  4. Math Help!

    On your birthday, you deposit $540.00 in an account that pays 6% interest, compounded annually. How much is in the account 3 years later? (1 point) • $637.20 • $543.18 • $643.15*** • $1,717.20

  1. Math/Compound Interest

    1. Use the compound interest table to find the compound amount earned on a $5,900 deposit for 10 years at 10% compounded semiannually. _____________________________________ A. 9,610.45 b. 15,654.47 c. 3,710.45 d. 12,375.66 2.

  2. Math

    1. When their child was born, Elaine and Mike Porter deposited $5,000 in a savings account. The money ears interest at 6 percent compounded quarterly. How much will the account be worth when their child celebrates her second

  3. algebra 2

    You deposit $800 in an account that pays 5.5% annual interest compounded continuously. Find the balance at the end of 5 years.

  4. Math

    Lee Holmes deposited $15,000 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $40,000 at 9% intrest compounded semiannually. At the end of 6 years, what is the

You can view more similar questions or ask a new question.