Posted by Hilda on .
Find the amount in an account if
$2000 is invested at 6.125%,compounded
semi-anually,for 2 years.
One of these is the correct answer.
I am coming up with (D) 544,757.84
Can you check, because I am probably wrong.
You are wrong. How can one invest 2000 dollars at a modest rate of interest for two years and get a half-million dollars?
Post your work, I will check.
Instead of calculating interest year-by-year, it would be simple to see the future value of an investment using a compound interest formula. The formula for compound interest is:
Pn = P0(1 + I)n
Pn = Value at end of n time periods
P0 = Beginning Value
I = Interest
n = Number of years