Asked by linda
Find the total investment and the interest earned when $2,500 is invested at 5% compounded semiannually for 3 years.
Answers
Answered by
Henry
P = Po(1+r)^n.
Po = $2,500 = Initial investment.
r = (5%/2)/100% = 0.025 = Semi-APR expressed as a decimal.
n = 2Comp/yr * 3yrs = 6 Compounding periods.
Plug the above values into the given Eq and get:
P = $2899.23
I = P-Po
Po = $2,500 = Initial investment.
r = (5%/2)/100% = 0.025 = Semi-APR expressed as a decimal.
n = 2Comp/yr * 3yrs = 6 Compounding periods.
Plug the above values into the given Eq and get:
P = $2899.23
I = P-Po
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.