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What is the future value of 1000 dollars in 5 years at interest rate of 5 percent compounded semi-annually?
Wiki User
∙ 13y ago
The first responder posted this response:
$1,280.08
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The next responder posted this response:
Assuming the 5% interest rate is the nominal annual rate, the first step is to calculate the effective interest rate.
ieffective = (1+r/m)m - 1
where r is the nominal rate (.05) and m is the compounding periods per year (semiannual = 2 compoundings per year).
ieffective = (1+.05/2)2 - 1 = .0506
Simply use this effective rate to solve
Future Value = Present Value * (1+i)n
where i is the effective interest rate and n is the number of years.
F = 1000*(1+.0506)5 = $1280.08
Wiki User
∙ 13y ago
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What is the future value of 1000 dollars in 4 years at interest rate of 5 percent compounded semiannually?
1000 x (1.025)8 which is $1218.40.
How much interest will 20000 earn in two years if invested at 6 percent compounded semiannually?
$5,249.54
What is 20000 in 5 years with 7 percent interest compounded semiannually?
After 5 years, 20000 at 7% per annum compounded semiannually will be 20000*(1 + 0.5*7/100)2*5 = 20000*(1.035)10 = 28211.98
If you invest 5000 at 1.8 percent for 5 years compounded semiannually what is the amount in the account at the end of 5 years?
You should have 5976.51 provided the fractional units of interest earned are also rolled into the capital.
5 percent interest compounded annually means percent paid every?
year
What is the future value of 1000 dollars in 4 years at interest rate of 5 percent compounded semiannually?
1000 x (1.025)8 which is $1218.40.
What is the effective rate of 13.5 percent when the interest is compounded semiannually?
It is 1.135^2 - 1 = 28.8%
Find the effective rate when the stated rate is 13.5 percent and the interest is compounded semiannually?
13.96%
How much interest will 20000 earn in two years if invested at 6 percent compounded semiannually?
$5,249.54
What is 20000 in 30 years with 7 percent interest compounded semiannually?
It is 20000*(1.07)^60 = 1158928.54
How much interest will 10000 earn in 18 months if invested at 8 percent compounded semiannually?
1200
How much money will you have at the end of one year if interest is compounded semiannually at 10 percent on a 600 deposit?
It will be 726.
What is 5000 dollars compounded semiannually at 6 percent for 5 years?
5000 x (1.03)10 = $6719.58
The future value of a 1000 investment today at 8 percent annual interest compounded semiannually for 5 years is?
$1480.24
What is 20000 in 5 years with 7 percent interest compounded semiannually?
After 5 years, 20000 at 7% per annum compounded semiannually will be 20000*(1 + 0.5*7/100)2*5 = 20000*(1.035)10 = 28211.98
What would be the amount of compound interest on 8000 invested for two years at 12 percent compounded semiannually?
Semiannually over two years is equivalent to 4 periods. If the interest is 12% every 6 months, then the amount of interest is It is 8000*[(1.12)4 -1] =4588.15
Find compound interest on Rs800 for 3 years at an interest 8 percent compounded semiannually for three years Find the compound inte?
800 x (1.04)6 ie Rs1012.26
