SOLUTION: You deposit $10,000 in an account earning 5% interest, compounded semi-monthly (twice a month). You plan to leave the account untouched for 25 years. How much interest will you ear

SOLUTION: You deposit $10,000 in an account earning 5% interest, compounded semi-monthly (twice a month). You plan to leave the account untouched for 25 years. How much interest will you ear

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Question 1014532: You deposit $10,000 in an account earning 5% interest, compounded semi-monthly (twice a month). You plan to leave the account untouched for 25 years. How much interest will you earn over the 25 years?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po(1+.05/24)^600, 24 compoundings a year for 25 years.
Po=10,000
10,000((1+.05/24)^600=34858.07, but $10000 must be subtracted because it was principal.
Interest is $24,858.07
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