## anonymous 4 years ago 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?

1. Mertsj

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

2. Mertsj

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

3. Mertsj

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

4. Mertsj

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

5. Mertsj

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