P1 = Po(1+r)^n
Po = $5,000
r = (6%/2)/100% = 0.03 = Semi-annual %
rate expressed as a decimal.
n = 2comp./yr * 2yrs. = 4 Compounding
periods.
P1 = 5000(1+0.03)^4 = $5627.54 after 2
years.
P2 = P1(1+r)^n
r = (8%/4)/100% = 0.02 = Quarterly % rate expressed as a decimal.
n = 4comp./yr. * 1.5yrs = 6 Compounding
periods.
P2 = 5627.54(1+0)^6 = 6337.52
10.On 16 april 1990, RM5000 was invested at 6% compounded semi annually. Find the amount accumulated on 16 october 1993 if the rate was charged to 8% compounded quarterly beginning 16 april 1992.
the answer is : RM 6339.24
i want to know the step to solve this question
1 answer