Asked by lynda
3. Joe and Sue invested $2000 at Bank America in 1995, at 6% compounded quarterly. In the year 2000
they moved to another city and took the total money from their first investment added $500 and invested it at Bank Bravo, at 7% compounded quarterly.
a. What is the value of this account now in 2004?
they moved to another city and took the total money from their first investment added $500 and invested it at Bank Bravo, at 7% compounded quarterly.
a. What is the value of this account now in 2004?
Answers
Answered by
Reiny
amount in 2000
= 2000(1.015)^20
= 2693.71
plus the extra 500 in year 2000
=3193.71
This will earn for 4 years
final amount
= 3193.71(1.0175)^16
= 4215.47
= 2000(1.015)^20
= 2693.71
plus the extra 500 in year 2000
=3193.71
This will earn for 4 years
final amount
= 3193.71(1.0175)^16
= 4215.47
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