You placed $6,113 in a savings account today that earns an annual interest rate of 16.32 percent, compounded semiannually. How much will you have in this account at the end of 11 years? Assume that all interest received at the end of the period is reinvested the next period. Round the answer to two decimal places.
Added by Sarah L.
Step 1
- Principal (P) = $6,113 - Annual interest rate (r) = 16.32% = 0.1632 - Number of times interest is compounded per year (n) = 2 (since it is compounded semiannually) - Total number of years (t) = 11 Show more…
Show all steps
Your feedback will help us improve your experience
Madhur L and 52 other Principles of Accounting 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.
Recommended Videos
Suppose you invest $11,370.00 into an account earning an interest rate of 2.469% compounded continuously for 2 year(s) and thereafter earning an interest rate of 3.595% compounded monthly. How much money is in the account after 11 years?
Madhur L.
Breanna O.
Kathleen C.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD