Question

1.

a) I invested $5,000 into an account earning 5% interest compounded monthly and left it there for 5 years. After the 5 years were up I transferred the money from that account into a new account that earned 6% interest compounded quarterly for the next 10 years. How much total money would I have at the end of the 15 years?

b) If I had left the $5,000 in the initial account earning 5% compounded monthly how long, to the nearest tenth of a year, would it have taken to get the same total as in part a?

Answer 1