Question

find the final amount of money in an account if $4,300 is deposited at 4% interest compounded semi-annually and the money is left for 5 years

Answer 1

Base amount: $4,300.00

Interest Rate: 4% (yearly)

Effective Annual Rate: 4.04%

Calculation period: 5 years

$5,241.68

Explanation:

The generic formula used in this compound interest calculator is

V = P(1+r/n)^(nt)

V = the future value of the investment

P = the principal investment amount

r = the annual interest rate

n = the number of times that interest is compounded per year

t = the number of years the money is invested for