Ask a New Question

Asked by Helen

6%pa compounded semi-annually
Principal-$6000
I need to find out how many interest periods for the amount to grow to $9500.
What is the formula too pleae.
13 years ago

Answers

Answered by drwls
Each interest period increases the principal by 3%. After N six-month interest periods,

Principal = 9500 = 6000*(1.03)^N
9500/6000 = 1.58333 = 1.03^N
N = Log1.58333/Log1.03= 15.55

If compounding only occurs once every six months, you will need to 16 interest periods to raise the principal above $9500
13 years ago

Related Questions

$18,500 at 4.5% compounded semiannually for 5 years 25000 at 7% compounded semi anually for 10 years. Compounded annually, P dollars is invested at annual interest rate r for 2 years. If the interest is... 5670 compounded annually at a 3.5 interest rate once a year yields what in interest You contribute $1,000 annually to a retirement account for 8 years and stop making payments at the a... At what rate compounded semi-annually will RM2000 become RM 3500 in five years Jim earns $44,700 annually and pays 11-1/4% for state and local taxes. How much tax does he pay... semi-annually means how many times a year 10"-15" precipitation annually permafrost prevents much plant life found mostly in Canada and Russ... $65,400 annually or $31 per hour is the average salary for which position? (1 point) Responses...
Ask a New Question
Archives Contact Us Privacy Policy Terms of Use