Question

$1,000 at 6% annual interest
a.
$10,008.00
c.
$14, 800.75
b.
$14,802.44
d.
$1,343.92

Answer 1

Use the compound interest formula to find the value of the investment after 5 years, compounded semiannually.

Answer 2

For interest compounded once annually, the compound amount is\[A(1+r)^n\]

If interest is compounded n times per year, then the compound amount would be \[A=P(1+\frac{ r }{ n })^{nt}\] Try applying this 2nd formula. Share your work. After you've done that, further questions would be welcomed.