On January 1, Kate invested $750 at 8.2% per annum, compounded semi-annually. On July 1, she invested another $750 at the same rate. How much will she have from these investments on the next July 1st?
2007-01-16 08:53:26 · 3 answers · asked by untilyoucamealong04 3 in Science & Mathematics ➔ Mathematics
It compounds twice a year (every 6 mos.). In other words, after every 6 mos. she'll get 4.1% added to her balance.
Jan 1, 2007: $750
Six months later:
July 1, 2007: $750 + 4.1%($750). = 1.041 * 750 = $780.75
Now she adds another $750:
$780.75 + $750 = $1,530.75
Six months later:
Jan 1, 2008: $1530.75 + 4.1%($1530.75) = 1.041 * 1530.75 = $1,593.51
Six months later:
July 1, 2008: $1593.51 + 4.1%($1593.51) = 1.041 * 1593.51 = $1,658.84
So she'll have $1,658.84
2007-01-16 09:15:37 · answer #1 · answered by Puzzling 7 · 0⤊ 0⤋
first investment is compounded at 4.1% semi-annually and will result in 750*(1+0.041)^3=846
second investment will result in 750*(1+0.041)^2=813
Add them up for the total value; if you want to know the profit, subtract the initial investments.
2007-01-16 17:14:12 · answer #2 · answered by iron_pennywise 1 · 0⤊ 0⤋
$846.08 + $812.76 = $1658.84 for net gain of $158.84 (10.6%)
2007-01-16 17:19:04 · answer #3 · answered by Darbo 3 · 0⤊ 0⤋