Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period.
-$10,000 deposit at an APR of 4% with semiannual compounding for 12 years

Question

Quizplus · Accepted Answer

The compound interest formula for compounding more than once a year is A = P(1 + r/n)^(nt). Here, P = $10,000, r = 0.04, n = 2 (semiannual), and t = 12. Plugging these values into the formula gives A = 10000(1 + 0.04/2)^(2*12) = $16,084.37.

Use the Compound Interest Formula for Compounding More Than Once