document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=886898>Question 886898</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You deposit 3000 in an account that pays 7% interest compunded semiannually<BR>\n" );
document.write( "After 4 years, the interest rate is increased to 7.16% compounded <BR>\n" );
document.write( "quarterly. What will be the value of the account in 8 years?<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 #536235 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=536235\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> you would calculate the future value of 3000 for 4 years at 7% compounded semi-annually.<BR>\n" );
document.write( "that would be your first solution.<BR>\n" );
document.write( "you would then calculate the future value of your first solution for the next 4 years at 7.16% compounded quarterly.<BR>\n" );
document.write( "that would be your final solution.\r<BR>\n" );
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document.write( "the calculations would be as follows:\r<BR>\n" );
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document.write( "first calculation:<BR>\n" );
document.write( "pv = 3000<BR>\n" );
document.write( "i = 7%/100/2 = .035 for each semi-annual time period.<BR>\n" );
document.write( "n = 4 * 2 = 8 semi-annual time periods.<BR>\n" );
document.write( "fv = 3000 * (1.035)^8 = 3950.427111\r<BR>\n" );
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document.write( "second calculation:<BR>\n" );
document.write( "pv = 3950.427111<BR>\n" );
document.write( "i = 7.16/100/4 = .0179 for each quarterly time period.<BR>\n" );
document.write( "n = 4*4 = 16 quarterly time periods.<BR>\n" );
document.write( "fv = 3950.427111 * 1.0179^16 = 5247.179038\r<BR>\n" );
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document.write( "the value at the end of 8 years is 5247.179038\r<BR>\n" );
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document.write( "a time period by time period display of the cash flows is shown below:<BR>\n" );
document.write( "the first 8 time periods are semi-annual.  the last 16 time periods are quarterly.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2014/071201.jpg\" alt=\"$$$\" </> </SPAN>\n" );
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