Financial Equation..?

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Calculate the future sum of $1,000, given that it will be held in the bank for 5 years and earn 10% compounded semiannually.

2007-09-09 15:53:06 · 3 answers · asked by BxBmr76 1 in Science & Mathematics ➔ Mathematics

FV = 1000(1.05)^10 = 1628.89

2007-09-09 16:00:48 · answer #1 · answered by gebobs 6 · 0⤊ 0⤋

Just use the old equation:
FS = 1000 (1+0.05)^10

2007-09-09 22:57:40 · answer #2 · answered by cattbarf 7 · 0⤊ 0⤋

The formula:
A(1+{i/m})^{mn} where m is the division in a year, and i is in decimal form.

Thus 1000(1+.05)^10 = $1,628.89.

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2007-09-09 22:57:46 · answer #3 · answered by Alam Ko Iyan 7 · 0⤊ 0⤋