Problema Solution
calculate compound interest on investment of $7500 at 6% compounded semi annually for 1 year
Answer provided by our tutors
The formula for the compound interest is
A = P (1 + (r/n))^ (n*t)
P = $7,500
r = 0.6 (60% interest)
n = 2 (interest compounded semiannually)
t = 1 years
A = 7500*((1 + (0.60/2))^2)
A = $12,675
After 1 year the compound interest will be $12,675.