Answer
Success!
A = 110,673.01
↓Steps Explained:↓
How much is 13000 worth after 40 semi-annual periods
using an annual interest rate of 11%
compounded semi-annual?
Calculate effective interest rate
There are 2 semi-annual periods in a year
Convert interest rate to semi-annual
| Semi-Annually Interest = | Annual Interest Rate |
| Compounding Periods |
| Semi-Annually Interest = | 0.11 |
| 2 |
Semi-Annually Interest = 0.055
Calculate Accumulated Balance
A = B(1 + i)n
where A = accumulated balance
B = opening balance
i = Semi-Annually interest rate
and n = number of periods
Plugging in our values
A = 110,673.01
A = 13000(1.055)40
A = 13000(8.5133087739763)
How much interest was earned?
Interest Earned = Accum. Value - Start Balance
Plug in our values
Interest Earned = 110,673.01 - 0.00
Interest Earned = 110,673.01
110673.01
Final Answer
A = 110,673.01Take the Quiz
Related Calculators: Rule of 72 | Effective Annual Yield Rate | Approximations of Interest Rate