Problema Solution
deposit $6000. pays 5.25% interest compounded semiannually. 10years later the interest increased to 7.25% compounded quarterly. what will be the value of the account after 16years.
Answer provided by our tutors
Formula:
After 10 years
P = Pi(1 + r/n)^nt
P = 6000(1 + 0.0525/2)^(2*10) = 10074.3
6 years after that
P = 10074.3(1 + 0.0725/4)^(4*6) = 15503.9
The value of the account after 16 years is $ 15503.90