document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1141246>Question 1141246</A>: <I><SPAN STYLE=\"word-break: break-all;\">  John invested $3000 that earns interest at 4% p.a. compounded monthly. Two years later, the interest rate is changed to 4.50% compounded quarterly. Determine the accumulated value of the investment two years after the change.<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 #761788 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=761788\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> f = p * (1 + r) ^ n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "for the first 2 years:\r<BR>\n" );
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document.write( "p = 3000<BR>\n" );
document.write( "r = 4% per year / 12 = .33333333% per month / 100 = .0033333333 per month.<BR>\n" );
document.write( "n = 2 years * 12 = 24 months.\r<BR>\n" );
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document.write( "formula becomes f = 3000 * (1 + .0033333333) ^ 24 = 3249.428877.\r<BR>\n" );
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document.write( "for the second 2 years:\r<BR>\n" );
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document.write( "p = 3249.428877.<BR>\n" );
document.write( "r = 4.5% / 4 = 1.125% per quarter / 100 = .01125 per quarter.<BR>\n" );
document.write( "n = 2 years * 4 = 8 quarters.\r<BR>\n" );
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document.write( "formula becomes f = 3249.428877 * (1 + .01125) ^ 8 = 3553.655408.\r<BR>\n" );
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document.write( "the future value for the first 2 years becomes the present value for the second 2 years.\r<BR>\n" );
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document.write( "the time period for the first 2 years is in months.<BR>\n" );
document.write( "you take the annual rate percent and divide it by 1200 to get the monthly rate.<BR>\n" );
document.write( "you take the number of years and multiply them by 12 to get the number of months.\r<BR>\n" );
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document.write( "the time period for the second 2 years is in quarters.<BR>\n" );
document.write( "you take the annual rate percent and divide it by 400 to get the quarterly rate.<BR>\n" );
document.write( "you take the number of hyers and multiply them by 4 to get the number of quarters.\r<BR>\n" );
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