Asked by chun
John invests RM25000 in an account for 8 years. The investment account pays 8% compounded
semi-annually for the first three years and 10% compounded quarterly for the rest of the period.
i. Calculate the future value of the investment
ii. Compute the interest earned from John’s investment.
semi-annually for the first three years and 10% compounded quarterly for the rest of the period.
i. Calculate the future value of the investment
ii. Compute the interest earned from John’s investment.
Answers
Answered by
Reiny
"The investment account pays 8% compounded semi-annually for the first three years"
---> 6 interest periods at a rate of .04
" 10% compounded quarterly for the rest of the period."
-----> 20 interest periods at .025 per period
amount = 25000(1.04)^6 (1.025)^20
= ....
---> 6 interest periods at a rate of .04
" 10% compounded quarterly for the rest of the period."
-----> 20 interest periods at .025 per period
amount = 25000(1.04)^6 (1.025)^20
= ....
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