Question 886898
you would calculate the future value of 3000 for 4 years at 7% compounded semi-annually.
that would be your first solution.
you would then calculate the future value of your first solution for the next 4 years at 7.16% compounded quarterly.
that would be your final solution.


the calculations would be as follows:


first calculation:
pv = 3000
i = 7%/100/2 = .035 for each semi-annual time period.
n = 4 * 2 = 8 semi-annual time periods.
fv = 3000 * (1.035)^8 = 3950.427111


second calculation:
pv = 3950.427111
i = 7.16/100/4 = .0179 for each quarterly time period.
n = 4*4 = 16 quarterly time periods.
fv = 3950.427111 * 1.0179^16 = 5247.179038


the value at the end of 8 years is 5247.179038


a time period by time period display of the cash flows is shown below:
the first 8 time periods are semi-annual.  the last 16 time periods are quarterly.

<img src = "http://theo.x10hosting.com/2014/071201.jpg" alt="$$$" </>