Question

$4750 invested at 10% p.a compounded semiannually for 10 years, calculate the interest

Answer 1

Answer: $7,853.16

Work Shown:

A = P*(1+r/n)^(n*t)

A = 4750*(1+0.10/2)^(2*10)

A = 12,603.164099436

A = 12,603.16

That represents the account balance after 10 years. To find the interest only, subtract off the deposit amount.

interest = A-P = 12,603.16 - 4,750 = 7,853.16