document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1192869>Question 1192869</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Brooke invested $16,700 in a mutual fund at 2.8% compounded monthly. After 2 years, the interest rate was changed to 8.6% compounded quarterly.\r<BR>\n" );
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document.write( "a) How much was the value of the fund 5 years after the rate change? $<BR>\n" );
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document.write( "b) How much was the total compound interest earned during the whole term? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #824865 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=824865\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> for the first 2 years, the number of time periods = 2 * 12 = 24 months and the interest rate per time period = 2.8% per year / 12 = .233333.....% per month.<BR>\n" );
document.write( "the future value becomes 17,660.73.<BR>\n" );
document.write( "that becomes the present value for the next 3 years.<BR>\n" );
document.write( "the interest rate for the next 3 years becomes 8.6% per year / 4 = 2.15% per quarter and the number of quarters becomes 3 * 4 = 12.<BR>\n" );
document.write( "the future value becomes 22796.55.\r<BR>\n" );
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document.write( "i used the financial calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a>\r<BR>\n" );
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document.write( "here are the results.<BR>\n" );
document.write( "the first results give you the future value 16700 for 24 months at .233333.....% per month.<BR>\n" );
document.write( "the second results give you the future value of 17660.73 for 12 quarters at 2.15% per quarter.\r<BR>\n" );
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document.write( "let me know if you have any questions.<BR>\n" );
document.write( "theo </SPAN>\n" );
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