l How much is 4000 worth after 20 Semi-Annuallys using an annual interes
<-- Start Balance
<-- # of periods
<-- Interest rate
              

Answer
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A = 5,128.15

↓Steps Explained:↓



How much is 4000 worth after 20 semi-annual periods

using an annual interest rate of 2.50%
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  =  0.025
  2

Semi-Annually Interest = 0.0125

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 = 5,128.15

A = 4000(1.0125)20

A = 4000(1.2820372317086)

How much interest was earned?

Interest Earned = Accum. Value - Start Balance

Plug in our values

Interest Earned = 5,128.15 - 0.00

Interest Earned = 5,128.15

5128.15

Final Answer

A = 5,128.15


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