could someone help to show me the forumula so
that i know how much to deposit, bank pays 5%interest compounded semiannually, i need to have 25000 within 6 yrs thanks in advance

Question

could someone help to show me the forumula so
that i know how much to deposit, bank pays 5%interest compounded semiannually, i need to have 25000 within 6 yrs thanks in advance

anonymous · Answer

Interest = Principle x Rate x Time

anonymous · Answer

thx will try that, wish it was for real lol

anonymous · Answer

homework question

anonymous · Answer

ok, if i have any more questions then feel free to ask :)

anonymous · Answer

sure
thx

anonymous · Answer

if calculations right i may have to think about it for real lol

anonymous · Answer

haha gl getting a bank for that :P

tkhunny · Answer

This is not simple interest.

I = 0.05  --  Annual Interest Rate
j = 0.05 / 2 = 0.025 -- Semi Annual Interest Rate

$Deposit * (1 + j)^{6*2} = 25000$

Solve for the Deposit Amount.