Austin invested $22,500 in a mutual fund at 4.6% compounded annually. After 4 years, the interest rate was changed to 8.7% compounded quarterly. After the rate change, the money is left in the account for an additional 6 years. What was the value of the fund after the the first 4 years? What was the value of the fund after the full 10 years?
Austin invested $22,500 in a mutual fund at 4.6% compounded annually. After 4 years, the interest rate was changed to 8.7% compounded quarterly. After the rate change, the money is left in the account for an additional 6 years. What was the value of the fund after the the first 4 years? What was the value of the fund after the full 10 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 20P
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![Austin invested $22,500 in a mutual fund at 4.6% compounded annually. After 4 years, the
interest rate was changed to 8.7% compounded quarterly. After the rate change, the money is
left in the account for an additional 6 years.
What was the value of the fund after the the first 4 years?
What was the value of the fund after the full 10 years?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F43694bcf-eacf-4a30-8d40-f766b55356e7%2F5bc62a4f-a5f2-4f51-aa91-f53fb5cc96dc%2Faqzhu1f_processed.png&w=3840&q=75)
Transcribed Image Text:Austin invested $22,500 in a mutual fund at 4.6% compounded annually. After 4 years, the
interest rate was changed to 8.7% compounded quarterly. After the rate change, the money is
left in the account for an additional 6 years.
What was the value of the fund after the the first 4 years?
What was the value of the fund after the full 10 years?
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