SOLUTION: Liza deposited Php 64,600.00 in a savings account which pays 8% interest compounded semi-annually.What will her balance be after 4 years?

Question 1172931: Liza deposited Php 64,600.00 in a savings account which pays 8% interest compounded semi-annually.What will her balance be after 4 years?
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

With an annual rate of 8% compounded semiannually, the interest rate is 4% (=0.04) each half year.

That means the amount grows by a factor of (1+0.04 = 1.04) every half year, or twice each year.

In 4 years, the amount grows by that factor 2*4 = 8 times.

ANSWER: Php 88,409.56

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