document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=611678>Question 611678</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You deposit $3000 in an account that pays 7% interest compounded semiannually. After ten years, the interest rate is increased to 7.25% compounded quarterly. What will be the value of the account after 16 years?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #385126 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=385126\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You deposit $3000 in an account that pays 7% interest compounded semiannually. After ten years, the interest rate is increased to 7.25% compounded quarterly. What will be the value of the account after 16 years? <BR>\n" );
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document.write( "compound interest formula: A=P(1+r)^n, P=initial amt, r=interest rate per period, n=number of periods, A=amt after t periods<BR>\n" );
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document.write( "After 10 years of semi annual compounding at 7% interest rate<BR>\n" );
document.write( "A=3000(1+.07/2)^10*2<BR>\n" );
document.write( "A=3000(1+.035)^20<BR>\n" );
document.write( "A=3000(1.035)^20&#8776;5969.37\r<BR>\n" );
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document.write( "After 16 years(4 more years of quarterly compounding at 7.25%  interest rate)<BR>\n" );
document.write( "A=5969.37(1+.0715/4)^4*4<BR>\n" );
document.write( "A=5969.37(1+.018125)^16<BR>\n" );
document.write( "A=5969.37(1.018125)^16&#8776;7956.94<BR>\n" );
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document.write( "Value of the account after 16 years=$7956.94  </SPAN>\n" );
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