Ask Question
10 June, 16:39

You deposit $3000 in an account that pays 7% interest compounded semiannually. After 4 years, the interest rate is increased to 7.28% compounded quarterly. What will be the value of the account after 8 years?

+4
Answers (1)
  1. 10 June, 16:50
    0
    The multiplier for the first 4 years is

    ... m1 = (1 +.07/2) ^ (2*4) ≈ 1.316809

    The multiplier for the last 4 years is

    ... m2 = (1 +.0728/4) ^ (4*4) ≈ 1.334534

    So the value at the end of 8 years will be

    ... $3000*m1*m2 ≈ $5,271.98
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You deposit $3000 in an account that pays 7% interest compounded semiannually. After 4 years, the interest rate is increased to 7.28% ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers