Question

Periodic Deposit: $7500 at the end of every six months

Answer 1

Answer:

The amount after 3 year at semi annually compound Interest is  $52186.203

Step-by-step explanation:

Given as

The amount deposit at the end of every six months  = $7500

Time period is 3 years ,

So principal for 3 years at $7500 for every six months = $7500 × 6 = $45,000

The rate of interest is 5% compounded semiannually

SO,  Amount = Principal $(1 + \frac{Rate}{2 \times 100})^{2 \times time}$

or,  Amount = $45,000 $(1 + \frac{5}{2 \times 100})^{2 \times 3}$

or,  Amount = $45,000 (1 + \frac{5}{200})^{6}

Or, Amount = $45,000×1.1596

So, Amount = $52186.203  

Hence The amount after 3 year at semi annually compound Interest is  $52186.203    Answer