# SOLUTION: Five years ago, \$10000 was invested at 6%/a compounded semi-annually. Today the investment rates have risen to 7%/a compounded annually. If the original investment and accumulated

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 Click here to see ALL problems on Permutations Question 20719: Five years ago, \$10000 was invested at 6%/a compounded semi-annually. Today the investment rates have risen to 7%/a compounded annually. If the original investment and accumulated interest is rolled into the new investment conditions, how much will it be worth in five years. Use A=P(1+i)^n I know for 6% P=10000, i = 0.03 but I don't know what n =? I know for 7% P=10000, i = 0.07 But I don't know what n =?Answer by venugopalramana(3286)   (Show Source): You can put this solution on YOUR website!SEE MY COMENTS IN CAPITAL LETTERS ............................................................................. > Five years ago, \$10000 was invested at 6%/a > compounded semi-annually. Today > the investment rates have risen to 7%/a compounded > annually. If the original > investment and accumulated interest is rolled into > the new investment > conditions, how much will it be worth in five years. > > Use A=P(1+i)^n..HERE A=AMOUNT=PRINCIPAL+INTEREST..P=PRINCIPAL YOU USED I FOR RATE PER TERM PER DOLLAR.. WE USE R FOR RATE AND I FOR INTEREST..N=NUMBER OF TERMS... > I know for 6% P=10000,CORRECT i = 0.03 VERY GOOD..IT IS RATE PER TERM HERE TERM IS SEMIANNUAL SO INTERET RATE IS HALF OF 6% THAT IS 3% THAT IS = 0.03 PER DOLLAR..but I don't know > what n =? AS I SAID N = NUMBER OF TERMS FOR 5 YEARS =10 HALF YEARS....SO N=10 > I know for 7% P=10000,NO...IT IS ACUMULATED INTEREST AND PRINCIPAL..SO YOU SHOULD USE A OBTAINED FROM ABOVE CALCULATION AS P HERE. i = 0.07 VERY GOOD..But I don't know > what n =?..N=5 IN THIS CASE AS NUMBER OF TERMS IN 5 YEARS IS 5. > NOW FIND A USING THE ABOVE VALUES.