The University is given a gift of $**590000** for the construction of a School of Management building. The University invests the gift into an account for future use.

The University receives **8.00**% on the money for **6** years then the rate drops to **7.00**% . If the building is constructed **23** years after the gift was received, how much is in the fund at that time?
$ 

Do not use dollar signs or commas in your answer. Include two decimals in your answer.





To calculate how much is in the fund after 23 years, we will approach this in two stages:

### Stage 1: Growth for the first 6 years at 8.00% interest.

The formula for compound interest is:

\[
A = P \left(1 + \frac{r}{100}\right)^t
\]

where:
- $P$ is the principal (initial amount),
- $r$ is the interest rate,
- $t$ is the time in years.

For the first 6 years:
- $P = 590000$,
- $r = 8.00\%$,
- $t = 6$.

Let's calculate the value after 6 years.

### Stage 2: Growth for the remaining 17 years at 7.00% interest.

After the first 6 years, the new principal will be the amount calculated from Stage 1. The new rate is 7.00%, and the time remaining is 17 years.

Let's calculate the total amount.It seems like I can’t do more advanced data analysis right now. Please try again later.

If you'd like, I can guide you through the steps to solve the problem manually or help you with any other question. Would you like details on the process?

Here are 5 related questions you might be interested in:
1. How is compound interest calculated in various scenarios?
2. How do different interest rates affect long-term investments?
3. What are some common applications of compound interest in finance?
4. How does the time period influence the final amount in compound interest?
5. How do you compare two different investments over time with changing interest rates?

**Tip:** When calculating compound interest over different periods, always treat each period separately and then apply the new principal for subsequent calculations.

The University is given a gift of 590000 for the construction of a School of Management building. The University invests the gift into an account for future use. The University receives 8.00% on the money for 6 years then the rate drops to 7.00%. If the building is constructed 23 years after the gift was received, how much is in the fund at that time? Do not use dollar signs or commas in your answer. Include two decimals in your answer.

This problem demonstrates how to calculate compound interest on an investment of 590000, with changing interest rates over a 23-year period. The university earns 8.00% for the first 6 years and 7.00% for the remaining 17 years. Learn the step-by-step process to find the final amount in the account. Suitable for college-level finance or business students.

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