
Algebra PreAlgebra and Basic Algebra Math Forum 
 LinkBack  Thread Tools  Display Modes 
November 6th, 2012, 11:42 AM  #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, 11:49 AM  #2 
Senior Member Joined: Jul 2010 From: St. Augustine, FL., U.S.A.'s oldest city Posts: 12,204 Thanks: 510 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, 11:55 AM  #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, 12:01 PM  #4 
Senior Member Joined: Jul 2010 From: St. Augustine, FL., U.S.A.'s oldest city Posts: 12,204 Thanks: 510 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, 07:00 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.


Tags 
amount, compound, deposit, find 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Amount  Chikis  Elementary Math  11  October 22nd, 2013 04:55 PM 
find an exact amount to charge before a service charge  TK12  Algebra  3  January 26th, 2013 05:15 AM 
How to find the amount of the ordinary annuity  fawazalusail  Algebra  9  November 6th, 2012 08:26 PM 
find the amount of ....  autumnsandsprings  Algebra  2  May 11th, 2012 02:26 AM 
Logic formula for calculating a customer's deposit.  jamesg  Applied Math  3  September 7th, 2010 07:13 PM 