maths-- compound interest
posted by minerva .
find the compund interest on $2500 for one year at 4% per annum compounded half-yearly.
which of these is correct?
$2500(1 + 0.04)^2
$2500(1 + 0.02)^2
The second one. 2500(1+.02)^2
Since the interest is compounded semi-annually you have to divide the annual rate of 4% by 2.
PS, the actual compound interest, which your question asks for, would really be 2500(1+.02)^2 - 2500
if investing 50,000 over 20 yrs at 3%apr with compouind interest figures semi-annually .figure using equation f(t)=p(1+r/n)nt
do you times the nt by the equation results to get the answer
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r=4% compounded semiannually
business takes a loan of $40,000, set at 4% interest and will be paid off in 12 years. The bank wants to save the business money by calculatin the interest on a remaining balance basis in case he pays it off early. The annual payment si assumed to be $3500 of principal and 1600 of interest. after the 1st year $5540 is paid annually. What would be the total amount of interest paid?