SOLUTION: 1860 is invested for 2 years at 5% per annum compound interest. How much more profitable would it be to have the interest added half yearly, rather than yearly?
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Question 1190837: 1860 is invested for 2 years at 5% per annum compound interest. How much more profitable would it be to have the interest added half yearly, rather than yearly? Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website! 1860 is invested for 2 years at 5% per annum compound interest. How much more profitable would it be to have the interest added half yearly, rather than yearly?
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FV = 1860*1.05^2 compounded anually
FV = 1860*1.025^4 compounded twice per year
