Question 1067659
f = p * (1 + r) ^ n


f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.


5.1% compounded semi-annually becomes 5.1/2 = 2.55% semi-annually.


that's the interest rate percent.


the interest rate per 6 month time period is .0255.


p = 1200


n = 7.5 years * 2 time periods per year = 15 semi-annual periods of 6 month each.


your formula becomes:


f = 1200 * (1.0255) ^ 15


solve for f to get f = 1750.718079.


that's how much money you'll have at the end of the 7 and 1/2 years.


to find the interest rate per time period, you divide the annual interest rate by the number of time periods per year, in this case 2.
5.1% / 2 = 2.55% / 100 = .0255.


to find the number of time periods, you multiply the number of years by the number of time periods per year, in this case 2.
7.5 * 2 = 15