If $1,000 is invested at an interest rate of 10% per year, compounded semiannually, find the value of the investment after 10 years.
Added by Ashley G.
Close
Step 1
Since the interest is compounded semiannually (twice a year), we divide the annual interest rate by 2: 10% / 2 = 5% Show more…
Show all steps
Your feedback will help us improve your experience
Kathleen Carty and 92 other Calculus 1 / AB educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Find the future value of $1,000 invested for 10 years at 8% interest: a) compounded annually b) compounded semiannually c) compounded quarterly
Madhur L.
Calculate the present value of an investment that will be worth $$\$ 1,000$$ at the stated interest rate after the stated amount of time. 10 years, at $5 \%$ per year, compounded annually
The Mathematics of Finance
Compound Interest
If $\$ 10000$ is invested at an annual interest rate of $11 \%,$ compounded quarterly, find the value of the investment after the given number of years. a) 5 years b) 10 years c) 15 years
Exponential and Logarithmic Functions
Exponential functions
Recommended Textbooks
Calculus: Early Transcendentals
Thomas Calculus
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD