Question

Neeta plans to invest $20 at the end of every 6 months into an account that pays 17% interest compounded semi-annually. What is the value of this investment after 5 years? Note: round your answer to a whole number Neeta plans to invest $ 20 at the end of every 6 months into an account that pays 17 % interest compounded semi - annually . What is the value of this investment after 5 years ? Note : round your answer to a whole number​

Answer 1

The investment value will be $465.15.The amount he invested will be $200.

What is compound interest?

Compound interest is computed on a loan or deposit based on the starting principle and the preceding period's accrued interest.

Money invest one time in six months = $20

Interest = 17%

Compounded type = semi-annually

The principal amount invested:

Money invested = $ 20 in 6 month

If he invests for 5 years, in 5 years there are 10 times she invests;

Investment(principal)=$ 20 × 10

Investment(principal)=$ 200

The compound interest:

$A= 200(1+\frac{0.17}{2})^2.5 \\\\ A= \ 452.2$

A =P+CI

452.2=200+CI

CI=252.2

The final balance is $452.2.

The total compound interest is $252.2.

Hence, the investment value will be $452.2.

To learn more about compound interest, refer to brainly.com/question/14295570.

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