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Vedmedyk [2.9K]
4 years ago
6

$875 at 9.5% compunded twice a year. How much money will there be in 5years?

Mathematics
1 answer:
TEA [102]4 years ago
5 0
P = A(1+i)ⁿ, where:
A= initial value
I = interest in %
n= period of compound investment.
However, if the interest is paid twice a year, that means you have to divide the interest by 2 and the period becomes twice n
P = 875(1+9.5%/2)⁵ˣ²
P = 875(1+4.75%)¹⁰
P =875( 1.0475)¹⁰
P =  $1,391.7
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3 years ago
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Rudik [331]

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4 years ago
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inysia [295]

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