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October 21, 2014

October 21, 2014

Posted by **minerva** on Friday, January 12, 2007 at 4:06am.

which of these is correct?

$2500(1 + 0.04)^2

or

$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

ok, thanks

- maths-- compound interest -
**tammy**, Wednesday, July 6, 2011 at 12:39amif 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

- maths-- compound interest -
**tammy**, Wednesday, July 6, 2011 at 12:44amdo you times the nt by the equation results to get the answer

- maths-- compound interest -
**Anonymous**, Saturday, October 1, 2011 at 11:37pmfind compound intrest if principal=2000,rate=20%per annum & time=2years3months

- maths-- compound interest -
**Anonymous**, Saturday, July 21, 2012 at 4:27pmA=4000,12years

r=4% compounded semiannually

- maths-- compound interest -
**Susan**, Monday, November 26, 2012 at 2:18pmbusiness 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?

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