You deposit $4000 in an account that pays 66% interest compounded semiannually. After 22 years, the interest rate is increased to 6.28% compounded quarterly. What will be the value of the account after 44 years?
2 answers
?? pays 66% interest ??
Let's say the initial rate is 6%
In that case, the value after 44 years will be
[4000(1+.06/2)^(2*22)](1+.0628/4)^(4*22) = 57,843.92
If the initial rate is not 6%, just change it in the expression above and re-evaluate.
In that case, the value after 44 years will be
[4000(1+.06/2)^(2*22)](1+.0628/4)^(4*22) = 57,843.92
If the initial rate is not 6%, just change it in the expression above and re-evaluate.
1 answer