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
2000*1.05^6 + 2000*1.05^5 + ... + 2000
= 2000(1.05^7 - 1)/0.05 = 16284.02
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.