Asked by Harmony
You deposit $10,000 in an account earning 3% 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?
Answers
Answered by
Damon
compounds 24 times a year
so r = .03/24 = 0.00125 per period
25 years = 25*24 = 600 periods
A = 10,000 * 1.00125^600
= 10,000 * 2.116008731
= $21,160.09
so r = .03/24 = 0.00125 per period
25 years = 25*24 = 600 periods
A = 10,000 * 1.00125^600
= 10,000 * 2.116008731
= $21,160.09
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.