Homework Help: Math

Posted by Diane on Tuesday, August 2, 2011 at 3:14pm.

If you deposit $900 semiannually in a bank which pays 6% interest compounded semiannually and make no more deposits after 7 years, what is the balance in the account 8 yrs. later from the last deposit?

Math - Reiny, Tuesday, August 2, 2011 at 4:25pm
will assume you are making 14 deposits, the first one 6 months from now, and then leave the balance alone for another year.

Amount at the last deposit
= 900[ 1.03^14 - 1]/.03 = 15377.69

Value at the end of 8 years = 15377.69(1.03)^2 = 16314.19

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