Mary has a savings account and is earning 10% annual interest compounded semi-annually. If she deposits $2,000 in the account every six months for three years, what will the future value of her account be? How much interest will she have earned?

1 answer

so, at 5% per period, after 6 periods, the account will have

2000*1.05^6 + 2000*1.05^5 + ... + 2000
= 2000(1.05^7 - 1)/0.05 = 16284.02
Similar Questions
  1. Huan deposited $850 into a collegesavings account earning 4.8% interest compounded annually. He also deposited $850 into a
    1. answers icon 3 answers
  2. Like deposits $3,500 into each of two savings accountsaccount I earns 3% annual simple interest account II earns 3% interest
    1. answers icon 1 answer
  3. 5 of 10No Luke deposits $3.500 into each of two savings accounts. • Account I earns 3% annual simple interest • Account I
    1. answers icon 1 answer
  4. Ben deposits $1,750 into each of two savings accounts.• Account I earns 2.75% annual simple interest. • Account II earns
    1. answers icon 1 answer
more similar questions