PRECALCULAS

ABDULLAH:

If $10,000 is invested at an interest rate of 2% per year, compounded semiannually, find the value of the investment after the given number of year. 4 year

The formula for calculating compound interest is F = P(1 + r/n) ^nt where P is the amount invested ($10,000), r is the interest rate expressed as a fraction (0.02), n is the number of times compounded in a year (2), t is the number of years invested (4) and F is the future value (i.e. the amount the investment is worth after t years). Have a go at the calculation now you have this information.

Alan:

ABDULLAH:

If $10,000 is invested at an interest rate of 2% per year, compounded semiannually, find the value of the investment after the given number of year. 4 year

The formula for calculating compound interest is F = P(1 + r/n) ^nt where P is the amount invested ($10,000), r is the interest rate expressed as a fraction (0.02), n is the number of times compounded in a year (2), t is the number of years invested (4) and F is the future value (i.e. the amount the investment is worth after t years). Have a go at the calculation now you have this information.

Thanks Alan.

I use a different version of the same formula

S = P(1+i) ⁿ

Where p is the principal = $10000
i is the interest r**e per compounding period = 0.02/2 = 0.01
n is the number of compounding periods = 4*2=8

S = 10000(1.01) ⁸