posted by Anonymous on .
Business Investment A firm of attorneys deposits $5000 of profit-sharing money at the end of each semiannual period for years. Find the final amount in the account if the deposits earn 10% compounded semiannually.
10,000 a year is deposited with the deposits earning 20% a year...
But you do not state how many years the money is deposited?
As Lynn stated, you did not specify how many years.
For simplicity's sake, let's say they did this for 8 years
amount = 5000 [ (1+.05)^16 - 1 ]/.05
notice I divided the rate by 2, since it is compounded semiannually, and doubled the years, because there are 16 half-years in 8 years
Whatever time you need, make the appropriate changes