SOLUTION: Jimmy invest Rm 15,000 in an account for six years. The investment account pays 8% compounded semi-annually for the first two years and 9% compounded monthly for the rest of

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Question 1083494: Jimmy invest Rm 15,000 in an account for six years. The investment account pays 8%
compounded semi-annually for the first two years and 9% compounded monthly for the
rest of the period.
a. What is the maturity value of this investment?
b. Find the interest earned from this investment.
Found 2 solutions by addingup, MathTherapy:
Answer by addingup(3677)   (Show Source): You can put this solution on YOUR website!
15,000(1+(0.08/2))^(2*2)
15,000(1.04)^2 = 16,224
----
16,224(1+(0.09/12))(12*4)
16,224(1.0075)^48 = 23,223.12 this is the maturity value
23,223.12-15,000 = amount of interest earned over the 6 years.
Answer by MathTherapy(10557)   (Show Source): You can put this solution on YOUR website!

Jimmy invest Rm 15,000 in an account for six years. The investment account pays 8%
compounded semi-annually for the first two years and 9% compounded monthly for the
rest of the period.
a. What is the maturity value of this investment?
b. Find the interest earned from this investment.
Correct answer: 

From this you should be able to calculate the interest.

IGNORE all other INCORRECT answers! 

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