Question
Mark put $3290 into a bank that offered 3% interest rate compounded monthly. Mark kept the money in this account for 9 years and then moved all this money to a new account that offered 6% interest rate compounded weekly.
Do not round any numbers until you get to an answer.
How much money was in the first account after 9 years?
$
How much money will be in Mark's new account after 8 more years in the new account?
In other words how much money will Mark have after 17 years?
Do not round any numbers until you get to an answer.
How much money was in the first account after 9 years?
$
How much money will be in Mark's new account after 8 more years in the new account?
In other words how much money will Mark have after 17 years?
Answers
Reiny
first stage:
i = .03/12 = .0025
n = 9(12) = 108
second stage:
i = .06/52 = .001153846
n = 8(52) = 416
after first stage:
amount = 3290(1.0025)^108 = $4308.33
after 2nd stage:
amount = 3290(1.0025)^108(1.001153846)^416
= $6960.66
i = .03/12 = .0025
n = 9(12) = 108
second stage:
i = .06/52 = .001153846
n = 8(52) = 416
after first stage:
amount = 3290(1.0025)^108 = $4308.33
after 2nd stage:
amount = 3290(1.0025)^108(1.001153846)^416
= $6960.66