Asked by Annie
Dieter deposists $ 9000 inoan account that pays 10%/a compunded quarterly, after 3 threes the inerest rate changes to 9%/a compounded semi-annually, calculate the value of his investments 2 years after this change
Answers
Answered by
Henry
I'm assuming you mean the rate changes to 9 % after 3 years.
Pt = Po(1+r)^n.
r = (10%/4) / 100% = 0.025 = Quarterly % rate exprssed as a decimal.
n = 3 yrs * 4 comp / yr. = 12 Comp. periods.
Pt = $9000(1.025)^12 = $12,104 After 3
years.
r = (9%/2) / 100% = 0.045 = Semi-annual
@ rate expressed as a decimal.
n = 2 Comp./yr * 2 yrs = 4 Comp.periods
Pt = $9000(1.045)^4 = $10.732.67.
Total value = $12,104.00 + 10,732.67 =
$22,836.67.
Pt = Po(1+r)^n.
r = (10%/4) / 100% = 0.025 = Quarterly % rate exprssed as a decimal.
n = 3 yrs * 4 comp / yr. = 12 Comp. periods.
Pt = $9000(1.025)^12 = $12,104 After 3
years.
r = (9%/2) / 100% = 0.045 = Semi-annual
@ rate expressed as a decimal.
n = 2 Comp./yr * 2 yrs = 4 Comp.periods
Pt = $9000(1.045)^4 = $10.732.67.
Total value = $12,104.00 + 10,732.67 =
$22,836.67.
Answered by
Henry
Correction:
Pt = $12,104(1.045)4 = $14,434.25. =
Total value after 5 years.
Pt = $12,104(1.045)4 = $14,434.25. =
Total value after 5 years.
Answered by
Sydney
Correction:
Accumalated Value = $12,104(1.045)^4
= $14,434.25.
(total value after 5 years
Accumalated Value = $12,104(1.045)^4
= $14,434.25.
(total value after 5 years
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.