An investment of $2500 accumulates at 6% p.a compounded semi annually for 3 years. At that time, the interest rate is changed to 5% compounded monthly. How much is the investment worth 2 years after the change in interest rate? What is interest gained at the end of the 5 years.

Answer 1

2500 * (1.03^6) = 2985.13
now 2985.13 (1+ .05/12)^24 = 3298.39

3298.39 -2500 = 798.39

Answer 2

tisa received $5200 on a deposit she made five years and eight months ago. The interest rate was is 6.7% p.a. compounded quaterly. How much interest was included in amount he received?