Wednesday

January 28, 2015

January 28, 2015

Posted by **christopher** on Saturday, April 17, 2010 at 4:26pm.

$9000 IS compounded semiannually at a rate of 11% for 20 years

- Math -
**christopher**, Saturday, April 17, 2010 at 4:32pmround to the nearest hundredths as needed

- Math -
**tchrwill**, Saturday, April 17, 2010 at 5:31pmWith compound interest, the interest due and paid at the end of the interest compounding period is added to the initial starting principal to form a new principal, and this new principal becomes the amount on which the interest for the next interest period is based. The original principal is said to be compounded, and the difference between the the final total, the compound amount, accumulated at the end of the specified interest periods, and the original amount, is called the compound interest.

In its most basic use, if P is an amount deposited into an account paying a periodic interest, then Sn is the final compounded amount accumulated where

...........Sn = P(1+i)^n

where i is the periodic interest rate in decimal form = %Int./(100m), n is the number of interest bearing periods, and m is the number of interest paying periods per year.

Sn = P(1+i)^n

Sn = 9000(1.055)^40 = $76,619.78

**Answer this Question**

**Related Questions**

math - fine the total amount in the compound interest account? $8000 is compound...

pre-calculus - find (a) the compound amount and (b) the compound interest for ...

Compound interest - Hello My teacher skipped over this and I have no clue how to...

algebra - $5650 is compound semiannually at a rate of 16% for 14 years how much ...

Math - $6550 is compounded semianually at a rate of 18% for 18 years. find the ...

Algebra - Show how you substitute the values into the formula, then use your ...

math - Suppose that $200 was deposited on 1st Jan 2000 into an account that ...

prealgebra - find the total amount in the compound interest amount. $6350 is ...

Compound math - (Future Value) Suppose you invest $8000 into an account that ...

Math - If 3000 dollars is invested in a bank account at an interest rate of 6 ...