If you deposit $26352.18 into an account paying 6.96% annual interest compounded semi-annually, how much money will be in the account after 14 years? Note: Do not round off the effective interest rate. Note: No need to write Unit of Measure (ex. $, ?, Php) and no need to put comma. Round your final answer in two decimal places.
Added by Pa F.
Close
Step 1
Since the interest is compounded semi-annually, we divide the annual interest rate by 2. So, the semi-annual interest rate is \(6.96 \% / 2 = 3.48 \% \). Show more…
Show all steps
Your feedback will help us improve your experience
Breanna Ollech and 56 other Macroeconomics 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
If $\$ 1000$ is invested at $4 \%$ per annum compounded semiannually, how much is in the account after 2 years?
Sequences; Induction; the Binomial Theorem
Geometric Sequences; Geometric Series
The amount of money, $A(t),$ in a savings account that pays $6 \%$ interest, compounded quarterly for $t$ years, with an initial investment of $P$ dollars, is given by $$A(t)=P\left(1+\frac{0.06}{4}\right)^{4 t}$$ If $\$ 500$ is invested at $6 \%$, compounded quarterly, how much will the investment be worth after 2 yr?
Functions, Graphs, and Models
Functions and Models
Use a calculator to solve the following problems. If $8.55 \%$ interest, compounded daily, is paid on a deposit of 55,250 dollar, how much money will be in the account at the end of 4 years?
Percent
Interest
Recommended Textbooks
Principles of Economics
Macroeconomics
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD