Question

What is the ending amount for a deposit of $2,000 in an account with a 1.34% interest rate, compounding semiannually, in 10 years?

Answer 1

$2,285.76

Explanation:

Year Year Interest Total Interest Balance

1 $26.89 $26.89 $2,026.89

2 $27.25 $54.14 $2,054.14

3 $27.62 $81.76 $2,081.76

4 $27.99 $109.75 $2,109.75

5 $28.37 $138.11 $2,138.11

6 $28.75 $166.86 $2,166.86

7 $29.13 $195.99 $2,195.99

8 $29.52 $225.52 $2,225.52

9 $29.92 $255.44 $2,255.44

10 $30.32 $285.76 $2,285.76

Base amount: $2,000.00

Interest Rate: 1.34% (yearly)

Effective Annual Rate: 1.34%

Calculation period: 10 years