John invested $45 000 in the investment account that pays an interest rate of 17.75%p.a. compounding bi-annually for 10 years. A
fter five and half years from the investment starting date, the interest rate changed from 17.75% to 18.25% p.a. compounding quarterly apply the formula, E=A (1+i/100)^n. what will be the compound amount will John have after 10 years
I will rewrite the formula on my own way. The formula is A=p (1+r/k)^kt A future value? P present value 45000 R interest rate 0.1775 K bi-annually 2 T time 5.5 years for the first period A=45,000×(1+0.1775÷2)^(2×5.5) A=114,662.75225375
Now use the formula again where the present value is 114,662.75225375 and the interest rate is 18.25% compounded quarterly (4). The time of the rest of the period is 4.5 years (10-5.5)
