Asked by minerva

find the compund interest on $2500 for one year at 4% per annum compounded half-yearly.

which of these is correct?

$2500(1 + 0.04)^2

or

$2500(1 + 0.02)^2

The second one. 2500(1+.02)^2

Since the interest is compounded semi-annually you have to divide the annual rate of 4% by 2.

PS, the actual compound interest, which your question asks for, would really be 2500(1+.02)^2 - 2500

ok, thanks
Answered by tammy
if investing 50,000 over 20 yrs at 3%apr with compouind interest figures semi-annually .figure using equation f(t)=p(1+r/n)nt
Answered by tammy
do you times the nt by the equation results to get the answer
Answered by Anonymous
find compound intrest if principal=2000,rate=20%per annum & time=2years3months
Answered by Anonymous
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Answered by Susan
business takes a loan of $40,000, set at 4% interest and will be paid off in 12 years. The bank wants to save the business money by calculatin the interest on a remaining balance basis in case he pays it off early. The annual payment si assumed to be $3500 of principal and 1600 of interest. after the 1st year $5540 is paid annually. What would be the total amount of interest paid?
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