Ivanthedumbfck
New member
- Joined
- Oct 7, 2014
- Messages
- 23
How much interest is included in the accumulated value of $3,200 paid at the end of every six months for four years if the interest rate is 6.5% compounded semi-annually?
Here's what I did, did i do this right?
I=0.065/2=0.0325
n=4x2=8
c=number of interest conversion periods per year/number of payments periods per year=2/2=1
FV=$3200
P=(1 + i)^c-1
(1+ 0.0325)^1-1= 0.0325
FV= PMT[(1+P)^N-1]/P
3200=PMT[(1.0325)^8-1]/0.0325
PMT=$356.68
Total Deposits=356.68x8=2853.44
Interest=3200-2853.44=$346.56
Here's what I did, did i do this right?
I=0.065/2=0.0325
n=4x2=8
c=number of interest conversion periods per year/number of payments periods per year=2/2=1
FV=$3200
P=(1 + i)^c-1
(1+ 0.0325)^1-1= 0.0325
FV= PMT[(1+P)^N-1]/P
3200=PMT[(1.0325)^8-1]/0.0325
PMT=$356.68
Total Deposits=356.68x8=2853.44
Interest=3200-2853.44=$346.56
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