Question 705339
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Start with 5000 for 3 years at 6% per annnum compounded quarterly:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ 5000(1.015)^{12}\ \approx\ $5978.09]


Now, if you invested ONLY that amount for an additional 3 years at 7.5% per annum compounded monthly, you would have:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ 5978.09(1.00625)^{36}\ \approx\ $7481.26]


Which is *[tex \LARGE 12500\ -\ 7481.26\ =\ 5018.24] short of your goal.


So the question becomes what do I need to invest for 3 years at 7.5% per annum compounded monthly to achieve $5018.24?  In other words, what is the PV of A = $5018.24, 3 years, 7.5%, monthly:


For this you need:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ PV\ =\ \frac{$5018.24}{(1.00625)^{36}}]


I'll leave that last little bit of arithmetic to you.


John
*[tex \LARGE e^{i\pi}\ +\ 1\ =\ 0]
<font face="Math1" size="+2">Egw to Beta kai to Sigma</font>
My calculator said it, I believe it, that settles it
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