Asked by Kelly
You deposit $1000 in an account that pays 8% interest compounded semiannually. After 2 years, the interest rate is increased to 8.40% compounded quarterly. What will be the value of the account after 4 years?
Answers
Answered by
Henry
Pt = Po(1+r)^n.
r = Rate per compounding.
n = The # of compounding periods.
2 yrs @ 8% + 2 yrs @ 8.4%.
Pt = !000(1.04)^4 + Po2(1.021)^8,
Pt = 1169.8586 + 1169.8586(1.021)^8,
Pt = 1169.8586 + 1381.4631 = $2551.32.
r = Rate per compounding.
n = The # of compounding periods.
2 yrs @ 8% + 2 yrs @ 8.4%.
Pt = !000(1.04)^4 + Po2(1.021)^8,
Pt = 1169.8586 + 1169.8586(1.021)^8,
Pt = 1169.8586 + 1381.4631 = $2551.32.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.