Math

posted by .

Find the total investment and the interest earned when $2,500 is invested at 5% compounded semiannually for 3 years.

  • Math -

    P = Po(1+r)^n.

    Po = $2,500 = Initial investment.

    r = (5%/2)/100% = 0.025 = Semi-APR expressed as a decimal.

    n = 2Comp/yr * 3yrs = 6 Compounding periods.

    Plug the above values into the given Eq and get:

    P = $2899.23

    I = P-Po

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math/algebra

    Compounded semiannually. P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial P(1+r/2)^2represents the value of the investment after 1 year. Rewrite this expression …
  2. compounded interest

    calculate the future value of an investment of $8,500 if it is to be invested for 9 years at an interest rate of 6.1%, compounded quarterly.
  3. College Algebra

    Investment A: $5,000 invested for 7 years compounded semiannually at 9%. Investment B: $ 6,000 invested for 5 years compounded quarterly at 4.1%. Find each total for each investment and determine which investment results are greater.
  4. Finite Math

    Find (a) the final amounts and (b) the total interest earned on the original investment. 1. $4500 is invested at 7.5% compounded annually for 6 years.
  5. Finance

    Joe and Sue invested $1500 at Bank America in 2000, at 4% compounded quarterly. In the year 2005 they moved to another city and took the total money from their first investment added $500 and invested it at Bank Bravo, at 5% compounded …
  6. MATH!!

    Joe and Susan invested $1500 at Bank of America in 2000, at 4% compounded quarterly. In the year 2005 they moved to another city and took the total money from their investment added $500 and invested in at Bank Bravo, at 5% compounded …
  7. Math

    If $37,500 is invested at 6.3% for 30 years, find the future value if the interest is compounded annually,semiannually, quarterly, monthly
  8. MATH HELP ASAP!

    Randee invested $1000 for college in an account earning 5% simple interest. When she withdrew the investment, she had earned a total of $550 in interest. How long was the money invested?
  9. math/compound

    Calculate the interest earned on an investment of 2500 invested at an interest rate of 6.15%/a compounded quarterly for 10 years.
  10. Math/Compound Interest

    1. Use the compound interest table to find the compound amount earned on a $5,900 deposit for 10 years at 10% compounded semiannually. _____________________________________ A. 9,610.45 b. 15,654.47 c. 3,710.45 d. 12,375.66 2. Megan …

More Similar Questions