interest rate r, compounded n times per year, after t years is
(1+r/n)^(nt)
So, for #1,
5900(1+.10/2)^(2*10) = 15,654.47
#2: 6000(1+.04/4)^(4*7) = 7927.74
1. Use the compound interest table to find the compound amount earned on a $5,900 deposit for 10 years at 10% compounded semiannually.
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A. 9,610.45
b. 15,654.47
c. 3,710.45
d. 12,375.66
2. Megan deposited $6,000 in an account that pays 4% compounded quarterly. Use the compound interest table to find the interest earned on the investment after 7 years.
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a. 7,680
b. 7,927.74
c. 1,680
d. 1,927.74
I'm confused on these. If you could walk me through it, I'd appreciate it!
1 answer