Question

In compound interest, if you have 1000$ at a 8% interest rate compounding semi-annually for 6 years, how would I set up the problem? I have this: (1000)(.08)(.5) … and then i know how to do it 6 times changing the 1000, i’m just confused if I include the .5 for semi-annually

Answer 1

Utilize this free compound interest calculator to solve a rate of return on an investment on a daily, weekly, monthly, quarterly, and annual basis

This compound interest calculator is a tool to help you estimate how much money you will earn on your deposit

The effective rate of 8% compounded semi-annually is 8.16%. You should choose to invest at 8% compounded semi-annually.

$1,489.85

What is the future value of $1000 after 5 years at 8% per year? If compounding monthly, $1,489.85 is the total compound interest value after five years.

Answer 2

Explanation:

the equation set up should be 1000÷(1+
`(0.08)/(2)`)^(2)(x) (x is for how many years).

in your case, its 1000÷(1+
`(0.08)/(2)`)^(2)(6)