Asked by Carrie

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?

Answers

Answered by Steve
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
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