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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 semiannually 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: 12,205 Thanks: 512 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: 12,205 Thanks: 512 Math Focus: Calculus/ODEs  Re: How to find the compound amount for the following deposi
The problem states that the interest is compounded semiannually, 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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