Question 1185662: • A deposit of $5,000 earns interest at 7% p.a. compounded quarterly for four years and five months. At that time, the interest rate changes to 6% p.a. compounded monthly. What is the value of the deposit three years after the change in the rate of interest?
Answer by ikleyn(52786)   (Show Source):
You can put this solution on YOUR website! .
A deposit of $5,000 earns interest at 7% p.a. compounded quarterly for four years and five months.
At that time, the interest rate changes to 6% p.a. compounded monthly.
What is the value of the deposit three years after the change in the rate of interest?
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Hello, 5 months do not comprise an integer number of quarters.
So, we need to know the bank policy for this non-traditional case.
Go to the bank and ask them.
Or call them by phone. Or contact by Email.
May be, there are some other ways to communicate with them (via their web-site, for example . . . )
The input data is incomplete and a precise solution is not possible in the form, as the problem is presented.
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