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29 votes
29 votes
Find the compound amount for the deposit. Round to the nearest cent. $15,000 at 8% compounded semiannually for 10 years

User Ibrahim Mahrir
by
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1 Answer

23 votes
23 votes

Answer:

$17,866.85

Step-by-step explanation:

Use the following formula to calculate the compound amount

Compound Amount = Future value of deposit - Initial deposit

Where

Future value of deposit = Initial Deposit x ( 1 + Periodic interest rate )^numbers of compounding periods = $15,000 x ( 1 + ( 8% x 6/12 ) )^(10 x 12/6 ) = $32,866.85

Initial Deposit = $15,000

Placing values in the formula

Compound Amount = $32,866.85 - $15,000

Compound Amount = $17,866.85

User Najeem
by
3.2k points