Question
What is the balance after years on a deposit of , earning interest compounded semiannually?
Solution
VerifiedAnswered 2 years ago
Answered 2 years ago
Step 1
1 of 4In this problem, we have the principal amount and the interest rate (expressed in decimal) where
However, since the interest is compounded semiannually, it means that the interest is compounded every half of the year, or in other words, twice a year. This means that we divide the interest rate by .
Also, since the interest is compounded semiannually, the number of interest periods is twice a year. Since the period is years,
Thus, our values are
Create a free account to view solutions
By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Create a free account to view solutions
By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Recommended textbook solutions




More related questions
- vocabulary
1/4
- vocabulary
1/7