document.write( "Question 1165395: If you invest $750 every six months at 8% compounded semi-annually, how much would you accumulate at the end of 10 years? \n" ); document.write( "
Algebra.Com's Answer #789885 by ikleyn(52787)\"\" \"About 
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    (1)\r\n" );
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document.write( "where  FV is the future value of the account;  P is the semi-annual payment (deposit); r is the semi-annual \r\n" );
document.write( "percentage yield presented as a decimal; n is the number of deposits (= the number of years multiplied by 2, in this case).\r\n" );
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document.write( "Under the given conditions, P = 750;  r = 0.08/2;  n = 2*10 = 20.  So, according to the formula (1), you get at the end of the 10-th year\r\n" );
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document.write( "    FV = \"750%2A%28%28%281%2B0.08%2F2%29%5E%282%2A10%29-1%29%2F%28%280.08%2F2%29%29%29\" = \"750%2A%28%281.04%5E20-1%29%2F0.04%29\" = $22,333.56.\r\n" );
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document.write( "Note that you deposit only  2*10*$750 = $15,000.  The rest is what the account earns/accumulates in 10 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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