Question

Brian invests $11,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for his investment.

Answer 1

Answer:

The important thing to remember here is that the interest is compounded semi annually, which means twice a year. When the 1st interest is compounded, the second interest is calculated on that new amount.

(11,500 + (11,500×6%)) = $ 12,190

(12,190 + (12190×6%)) = $ 12921.40

Explanation: