SOLUTION: find the compunded amount for the deposits $15,000 at 4.6% compounded semiannually for 11 years

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Question 539948: find the compunded amount for the deposits $15,000 at 4.6% compounded semiannually for 11 years
Answer by jpg7n16(66) About Me  (Show Source):
You can put this solution on YOUR website!
The equation you need to solve this problem is:
x=p%2A%28%281%2Bi%29%5En%29
Where:
x = the final resulting sum of money
p = original principal
i = interest rate of the compounding period
n = number of compounding periods
.
.
P is given in the problem.
p=15000
To calculate i, you should take the annual rate and adjust it to the semiannual rate (semiannual meaning twice per year), by dividing by 2.
i=.046%2F2=.023
Likewise, adjust the timeframe to find the number of compounding periods.
n=11%2A2=22
Then, just plug in your figures into the equation.
x=15000%2A%28%281%2B.023%29%5E22%29=15000%2A1.694164=24737.47
After 11 years of semiannual compounding, the $15,000 will grow to $24,737.47.