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majarm majarm
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4 years ago
An investment of $2500.00 accumulates interest at 9.25% compounded quarterly. After 18 months the rate changed to 9.75% compounded semi-annually. Calculate the accumulated value three years after the initial investment.
Textbook 

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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SupremeSupreme
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4 years ago
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Step 1
PV = 2500.00; i =   = 2.3125% = 0.023125; n =  (4) = 6; I/Y = 9.25
 FV = 2500  = 2867.56

Programmed solution:

Step 2
PV = 2867.56; i =   = 4.875% = 0.04875; n =  (2) = 3; I/Y = 9.75
 FV = 2867.56  = 3307.72

Programmed solution:

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