SOLUTION: • A deposit of $5,000 earns interest at 7% p.a. compounded quarterly for four years and five months. At that time, the interest rate changes to 6% p.a. compounded monthly. What i

Question 1185662: • A deposit of $5,000 earns interest at 7% p.a. compounded quarterly for four years and five months. At that time, the interest rate changes to 6% p.a. compounded monthly. What is the value of the deposit three years after the change in the rate of interest?

Answer by ikleyn(52786) (Show Source): You can put this solution on YOUR website!
.
A deposit of $5,000 earns interest at 7% p.a. compounded quarterly for four years and five months.
At that time, the interest rate changes to 6% p.a. compounded monthly.
What is the value of the deposit three years after the change in the rate of interest?
~~~~~~~~~~~~~~~~~~~~~~

Hello, 5 months do not comprise an integer number of quarters.

So, we need to know the bank policy for this non-traditional case.

Go to the bank and ask them.

Or call them by phone. Or contact by Email.

May be, there are some other ways to communicate with them (via their web-site, for example . . . )

The input data is incomplete and a precise solution is not possible in the form, as the problem is presented.

RELATED QUESTIONS
4. You are planning to deposit $15,000 into a bank account at the end of each year for 5... (answered by Theo)

You would like to have $41,000 in 5 years for the down payment on a new house following... (answered by ikleyn)

A debtor, who receives a loan of $30, 000, agrees to deposit equal sums at the beginning... (answered by Theo)

A person wishes to deposit $5,000 per year in a savings account which earns interest of 8 (answered by ikleyn)

Stan has a $18,200 certificate of deposit that earns 4.8% interest compounded quarterly... (answered by Theo)

What is the present value of an annuity that earns interest at 4.5% compounded quarterly... (answered by MathLover1,MathTherapy)

You wish to purchased a house for $200,000 in 12 years. You can invest your money at 5%/a (answered by Theo)

You wish to purchased a house for $200,000 in 12 years. You can invest your money at 5%/a (answered by ikleyn)