A $10,000 investment earned interest at 4.5% compounded quarterly for 1 year and 5.5% compounded quarterly for the next year. What is the amount in the account at the end of 2 years?

Explanation:

We use this formula for compound interest

A = P*(1 + r/n)^(n*t)

The variables are,

For the first year, we have this set of values

Which leads to this

A = P*(1 + r/n)^(n*t)

A = 10,000*(1 + 0.045/4)^(4*1)

A = 10,457.6508633057 approximately

A = 10,457.65 after rounding to the nearest cent

This value of A will be the new deposit value P when we do another round of calculations. For the second round, we have

So,

A = P*(1 + r/n)^(n*t)

A = 10,457.65*(1 + 0.055/4)^(4*1)

A = 11,044.7927637434

A = 11,044.79

There is $11,044.79 in the account after 2 years.

For each case, the value of n = 4 stays the same (since both rounds are compounding quarterly, aka 4 times a year). Also, we have t = 1 the same because each timespan is 1 full year.

Side note: The total amount of interest earned is 11,044.79 - 10,000 = 1,044.79 dollars.

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step-by-step explanation:

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on monday rodney ate 1/4th of the sandwich = 3/12

on tuesday he ate 1/3rd of the sandwich = 4/12

therefore in total he has eaten = 3/12 + 4/12 = 7/12

thus we can say that he has eaten 7/12 of the sandwich on monday and tuesday alltogether.

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