l How much is 13000 worth after 40 Semi-Annuallys using an annual intere
<-- Start Balance
<-- # of periods
<-- Interest rate
              

Answer
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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 = 110,673.01


Related Calculators:  Rule of 72  |  Effective Annual Yield Rate  |  Approximations of Interest Rate
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