SOLUTION: 1. Sajid has a goal of saving $20 000 in 8 years. What principal invested for 5 years at 6% per annum, compounded semi-annually, then for the next 3 years at 6.5%/a, compounded qua

Question 241324: 1. Sajid has a goal of saving $20 000 in 8 years. What principal invested for 5 years at 6% per annum, compounded semi-annually, then for the next 3 years at 6.5%/a, compounded quarterly, would achieve this goal?

Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
The formula is

For 5 year investment:
yrs
(semi-annually)

------------------------
For 3 year investment:

(quarterly)

------------------------------
If I read the problem right, , the earnings
after 5 years, will become , the principle
invested for 3 years
given:

--------------------
substituting:

and

The original principle invested is $12,264.76
Hope I got it right

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