Please help im failing this class!!! An account earns 2.4% interest compounded semi anually. Calculate how much interest would be earned for the 24th compounding period if the balance at the end of the 23rd compounding period is $8532.47

Question

Please help im failing this class!!! An account earns 2.4% interest compounded semi anually.  Calculate how much interest would be earned for the 24th compounding period if the balance at the end of the 23rd compounding period is $8532.47

saifoo.khan · Answer

Do you know the compound interest formula?

anonymous · Answer

no :(

saifoo.khan · Answer

http://www.creditvisionary.com/wp-content/uploads/2013/05/compound-interest.jpg http://www.moneyguideindia.com/wp-content/uploads/2011/11/compound-interest-formula.jpg http://www.mathwarehouse.com/compound-interest/images/formula-compound-interest.png

anonymous · Answer

ok can u show me how to do it

saifoo.khan · Answer

Here: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/compound-interest-tutorial/v/introduction-to-compound-interest

anonymous · Answer

Ok lets use this equation:
$$A=P\left(1+\frac{r}{n}\right)^{nt}$$
Where 
r=2.4% =.024 
n=semi-annually =2
A=8532.47

This occurs at the 23rd compounding period. We get paid twice a year :
23/2=11.5
So at the 11.5 years we have our 23rd compounding period
so t=11.5

Plug all the known values into your equation and then solve for P

anonymous · Answer

Once we determine P then we must determine how much money we have at the 24th compounding period

anonymous · Answer

I can explain here actually