Nancy invests $100 in one account for 10 years at a 9% interest rate compounded annually, and she invests $150 in an account for 10 years at a 6% interest rate compounded semi-annually. How much money will she have in the accounts after 10 years?
$507.66
$350.00
$1000.45
$456.23
2007-05-01 09:14:02 · 5 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
At 9% per year compounded annually, your money grows by a factor of (1+9/100)^10 in 10 years.
At 6% per year compounded semiannually (that is twice per year or once every 6 months)), your money grows by a factor of [1+(1/2)*(6/100)]^20 in 20 6 month periods (or 10 years)
P = $100*(1+9/100)^10 + $150*[1+(1/2)*(6/100)]^20
P = $100*2.3674 + $150*(1+6/200)^20
P = $236.74 + $150*1.8061
P = $236.74 + $270.92
P = $507.66
2007-05-01 09:26:31 · answer #1 · answered by Astral Walker 7 · 0⤊ 1⤋
the equation:
A=P(1+(r/n))^nt
A is the amount after t years
P is the principal (your original amount)
r is the annual interest rate
n is the number of pay periods per year
so A1=100(1+(0.09/1))^(1*10)
A1=236.74
and A2=150(1+(0.06/2))^(2*10)
A2=270.92
So your answer is (236.71+270.91)=$507.63...
which I guess is your answer of "$507.66"
I hope I'm getting 10 points out of this
2007-05-01 09:28:53 · answer #2 · answered by lucky 2 · 0⤊ 0⤋
100 * 1.09^10 + 150 * 1.03^20 = $507.65
2007-05-01 09:22:01 · answer #3 · answered by Dave 6 · 0⤊ 1⤋
100*(1.09)^10+150*(1.03)^20=507.66
2007-05-01 09:19:24 · answer #4 · answered by bruinfan 7 · 0⤊ 1⤋
i believe it's $456.23
2007-05-01 09:20:20 · answer #5 · answered by mommieof2 2 · 0⤊ 1⤋