Asked by Angela Scamardella on May 07, 2024
Verified
An investment consists of deposits of $500 per quarter for 10 years. How much will be in the account after 10 years if interest is 5.5% compounded semi-annually?
Compounded Semi-annually
A method of calculating interest wherein the interest is added to the principal amount twice a year.
Interest
The amount paid for the use of borrowed money, usually expressed as a percentage of the principal.
Investment
The action of allocating resources, usually money, with the expectation of generating an income or profit.
- Calculate the amount of money in an investment account considering regular deposits and compounding interest rates.
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Learning Objectives
- Calculate the amount of money in an investment account considering regular deposits and compounding interest rates.