Your bank pays an interest rate quoted as 4.0% per annum compounded semi-annually. You invest $10,000 into the bank now for a 5 year period. What will your balance be after 5 years?
We use the formula:
A=P(1+r/2)^2n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=10,000*(1+0.04/2)^(2*5)
=10,000*1.21899442
=$12189.94(Approx).
Your bank pays an interest rate quoted as 4.0% per annum compounded semi-annually. You invest $10,000...
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