Compound Interest
compounded semiannually
A = P(1+(r/2))^2n
r is annual rate as a decimal
P is principle
n is number of years
A is present value
A = 2000(1.0245)^16 = 2945.92
Suppose that
$2000 is invested at a rate of
5.1% , compounded semiannually. Assuming that no withdrawals are made, find the total amount after 7 years.
3 answers
P = Po(1+r)^n.
Po = $2000.
r = 0.051/2 = 0.0255 = Semi-annual % rate expressed as a decimal.
n = 2Comp./yr. * 7yrs. = 14 Compounding
periods.
Po = $2000.
r = 0.051/2 = 0.0255 = Semi-annual % rate expressed as a decimal.
n = 2Comp./yr. * 7yrs. = 14 Compounding
periods.
Suppose that
$2000
is loaned at a rate of
15%
, compounded monthly. Assuming that no payments are made, find the amount owed after
6
years
$2000
is loaned at a rate of
15%
, compounded monthly. Assuming that no payments are made, find the amount owed after
6
years
3 answers