Asked by Victoria
You deposit $10,000 in an account earning 5% interest, compounded semi-monthly (twice a month). You plan to leave the account untouched for 25 years. How much interest will you earn over the 25 years?
Round your answer to the nearest cent.
Round your answer to the nearest cent.
Answers
Answered by
Henry
P = Po(1+r)^n.
r = (0.05/12)*1/2 = 0.0020833 =
Semi-monthly % rate.
n = 2Comp/mo. * 300mo = 600 Compounding periods.
Solve for P.
I = P-Po.
r = (0.05/12)*1/2 = 0.0020833 =
Semi-monthly % rate.
n = 2Comp/mo. * 300mo = 600 Compounding periods.
Solve for P.
I = P-Po.
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