SOLUTION: You deposit $300 in an account earning 8% compound interest for 3 years. Find the future value and the interest earned for the following compounding frequency. Semiannually: FV: 38

Algebra ->  Finance -> SOLUTION: You deposit $300 in an account earning 8% compound interest for 3 years. Find the future value and the interest earned for the following compounding frequency. Semiannually: FV: 38      Log On


   

Question 1183131: You deposit $300 in an account earning 8% compound interest for 3 years. Find the future value and the interest earned for the following compounding frequency. Semiannually: FV: 380.77 Interest earned: ?
Answer by ikleyn(52915) About Me  (Show Source):
You can put this solution on YOUR website!
.

FV = 300%2A%281%2B0.08%2F2%29%5E%283%2A2%29 = 300%2A1.04%5E6 = 379.60  dollars.    ANSWER


Interest earned = $379.60 - $300 = $79.60.     ANSWER

Solved.

------------------

To see many other similar  (and different)  solved problems on compounded interest accounts,  look into the lesson
    - Compounded interest percentage problems
in this site.


Learn the subject from there.