Ngoc T.

asked • 11/06/21

(a) How much will be in the account after 12 years? (b) How much did you deposit in total? (c) How much total interest did you earn?

You decide to contribute to a savings account with an interest rate of 10% compounded semi-annually. If you contribute semi-annually deposits of $700 for 12 years,


(a) How much will be in the account after 12 years? correct  


(b) How much did you deposit in total?   


(c) How much total interest did you earn? 

Mark M.

What formula are you using?
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11/07/21

Ngoc T.

for compounded semiannually I think P[(1+i)^n-1]
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11/07/21

Mark M.

You need the one with regular contributions. The one you present does not take that into account.
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11/07/21

Bradford T.

Also, the total formula is different if you contributed $700 at the beginning or not. The contribution formula does not take an initial investment into account. Most of the time it is zero anyway in these scenarios.
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11/07/21

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