Kathleen deposit $20 into her account that earns 2.5% interest that is compound twice a year. How much money will kathleen have in her account in 30 years?

Question

Mathematics

Esmeralda Maynard

27 December, 14:45

Kathleen deposit $20 into her account that earns 2.5% interest that is compound twice a year. How much money will kathleen have in her account in 30 years?

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Answers (1)

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Lorelei Perkins · Answer 1

Present value, P = 20

compounding interest per 6 months, interest = 0.025/2 = 0.0125

Number of periods, n = 30*2 = 60 (half-years)

Future value in 30 years

=P (1+interest) ^n

=20 (1.0125) ^60

= $42.14