waht is the account position at the end of the year

[rana207]

At the beginning of 1995, Ms. Hoa, received a bonus of $2,500. She deposited this sum into a bank account which paid interest at 8 % compounded semiannually for the first four years and then reduced to 6% compounded quarterly. How much was in the account at the end of 2004?

[Loosehead]

I'm assuming semi annually means every 6 months. and the 6% paid quarterly is paid only for one year, ie 4 quarters.

so (2500x(1.04**8))x(1.015**4)  [** means to the power]

= $3631.37

But if this is your homework then you'd better be able to explain the working!

[Didwot]

You obviously have access to a computer. You probably have a spreadsheet programme.
It is a very simple task to set up the spreadsheet to do the calculations, adding back the interest at the appropriate dates, but for your long term benefit I am not going to tell you how to do it. Just give it a go and tell us what the answer is

[Loosehead]

err Didwot, is my post invisible to you??!