I'm having a great deal of trouble with this problem:
What will an investment of $100,000 amount to after 5 years if it earns 8% interest compounded twice annually?
Could someone please walk me through the steps of this problem?
The answer is $148,024.43, I just don't know how to get there
What will an investment of $100,000 amount to after 5 years if it earns 8% interest compounded twice annually?
Could someone please walk me through the steps of this problem?
The answer is $148,024.43, I just don't know how to get there
-
A = P * (1 + i/n)^(n * t)
P = 100,000
i = 0.08
n = 2
t = 5
A = 100000 * (1 + 0.08 / 2)^(2 * 5)
A = 100000 * (1 + 0.04)^10
A = 100000 * (1.04)^10
A = 100000 * 1.48024428491834392576
A = 148024.428491834392576
A = 148024.43
P = 100,000
i = 0.08
n = 2
t = 5
A = 100000 * (1 + 0.08 / 2)^(2 * 5)
A = 100000 * (1 + 0.04)^10
A = 100000 * (1.04)^10
A = 100000 * 1.48024428491834392576
A = 148024.428491834392576
A = 148024.43