I say about $16,4200 because u have to make the decimal into a fraction and make sure u don't forget to round to the nearest hundreth of a tenth. then divide by the 6.2% and see what u come up with. then after that multiply that by 5 yrs. When u get that answer subtract it from 16,4200 and that will be your answer to ur question.
You can use the same procedure for the next question it is an open ended answer. but u prtobably get the picture.
Comments
F = P(1 + r)^n
F = future amount
P = principle amount
r = interest rate
n = number of times compounded
1) semiannually for 5 years: n = 2*5 = 10
(720)(1 + 0.062)^10
= 720(1.062)^10
= 720(1.8249)
= 1313.95
2) semiannulally for 2 yrs: n = 2*2 = 4
(1100)(1 + 0.055)^4
= 1100(1.055)^4
= 1100(1.2388)
= 1362.71
I say about $16,4200 because u have to make the decimal into a fraction and make sure u don't forget to round to the nearest hundreth of a tenth. then divide by the 6.2% and see what u come up with. then after that multiply that by 5 yrs. When u get that answer subtract it from 16,4200 and that will be your answer to ur question.
You can use the same procedure for the next question it is an open ended answer. but u prtobably get the picture.
720(1+(.062/2)^10
720 * rate (must be halved if compounded twice year)
for 10 periods
(1+.031)^10 = 1.3572 (720) = 977.06
(1+(.055/2))^4 (1100)= 1226.08
1. 1166.4
2. 1342