sarah deposited $2000 in an investment fund that earned 12.6% per year compounded anually. after 5 years the funds were invested in a second investment fund that earned 15.8% per year compunded semi anually. if the second fund continues earning at the same rate how much will sarahs fund be worth after an additional 5 years?

Question

mertsj · Answer

$$A=P(1+\frac{r}{n})^{nt}$$

mertsj · Answer

$$A=2000(1+\frac{.126}{1})^{5}=3620.11$$

mertsj · Answer

That's the first 5 years.  Now we will invest that for the next 10 years:

mertsj · Answer

$$A=3620.11(1+\frac{.158}{2})^{2(5)}=7743.48$$

mertsj · Answer

That's for the next 5 years, not 10.  10 years total.