SOLUTION: Estelle deposits R1000.00 into a savings account paying 6.5% interest per year compounded quarterly. after three years she withdraws R500.00 from the account and deposits it into a

Algebra ->  Finance -> SOLUTION: Estelle deposits R1000.00 into a savings account paying 6.5% interest per year compounded quarterly. after three years she withdraws R500.00 from the account and deposits it into a      Log On


   

Question 1086189: Estelle deposits R1000.00 into a savings account paying 6.5% interest per year compounded quarterly. after three years she withdraws R500.00 from the account and deposits it into another account paying 12% interest per year compounded semi-annually. How much is the total amount accrued from both accounts two years after making the second deposit?
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
1000(1+(0.065/4))^(4*3) = 1000(1.2134) = 1213.4
1213.4-500 = 713.4
So, if I understand you correctly, she keeps 713.40 in the savings account earning a rate of 6.5% compounded quarterly and invests the other 500 rupees into an account that pays 12%/annum compounded twice a year. I don't understand "making the second deposit", so I'll ignore it:
713.4(1+(0.065/4)^(4*2) = 713.40(1.138) = multiply, use your calculator
500(1+(0.12/2)^(2*2) = 500(1.262) = use your calculator
add your two results to find out how much is the total amount.