What will a deposit of $4,500 left in the bank be worth if left in the...
What will a deposit of $4,500 left in the bank be worth if left in the bank if left for six years at 10% compounded semi-annually?
Homework Answers
We use the formula:
A=P(1+r/2)^2n
where
A=future value
P=present value
r=rate of interest
n=time period.
Hence
A=$4500*(1+0.1/2)^(2*6)
=$4500*1.795856326
which is equal to
=$8081.35(Approx).
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