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$2,000 at 5% compounded semiannually for 2 years

 Feb 11, 2015

Best Answer 

 #1
avatar+129845 
+5

Using A = P(1 + r/n)^(n*t)    where

A =  the amount acumulated

P  = the principal = 2000

r = the interest rate = .05

n = the compounding periods per year  = 2

t= the number of years  = 2

So we  have

A = 2000(1 + .05/2)^(2 * 2)   = 2000(1 + .025)^4 = $2207.63

 

 Feb 11, 2015
 #1
avatar+129845 
+5
Best Answer

Using A = P(1 + r/n)^(n*t)    where

A =  the amount acumulated

P  = the principal = 2000

r = the interest rate = .05

n = the compounding periods per year  = 2

t= the number of years  = 2

So we  have

A = 2000(1 + .05/2)^(2 * 2)   = 2000(1 + .025)^4 = $2207.63

 

CPhill Feb 11, 2015

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