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 November 6th, 2012, 12:42 PM #1 Newbie   Joined: Oct 2012 Posts: 13 Thanks: 0 How to find the compound amount for the following deposit ? Find the compound amount for the following deposit. $19,000 at 6% compounded semi-annually for 5 years. ---------------------- i= 0.06/2 n= 2*5 n= 10 A= 19,000(1+0.06/2)^10 A= 19,000(1.0300)^10. A=$25,534.41 What I can't understand is how do we get the "2" . Thanks.
 November 6th, 2012, 12:49 PM #2 Senior Member     Joined: Jul 2010 From: St. Augustine, FL., U.S.A.'s oldest city Posts: 12,211 Thanks: 520 Math Focus: Calculus/ODEs Re: How to find the compound amount for the following deposi The 2 results from the fact that there are 2 compounding periods per year.
 November 6th, 2012, 12:55 PM #3 Newbie   Joined: Oct 2012 Posts: 13 Thanks: 0 Re: How to find the compound amount for the following deposi And how do we know there 2 compounding periods per year ?
 November 6th, 2012, 01:01 PM #4 Senior Member     Joined: Jul 2010 From: St. Augustine, FL., U.S.A.'s oldest city Posts: 12,211 Thanks: 520 Math Focus: Calculus/ODEs Re: How to find the compound amount for the following deposi The problem states that the interest is compounded semi-annually, which means twice per year, every 6 months.
 November 6th, 2012, 08:00 PM #5 Newbie   Joined: Oct 2012 Posts: 13 Thanks: 0 Re: How to find the compound amount for the following deposi My bad, I get it now. Thanks.

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