Problema Solution
Manually calculate the compound interest on an investment of $8,500 at 6% interest, compounded semiannually, for 18 months.
Answer provided by our tutors
beginning for the year: $8,500
after 6 months: 8500 + (0.06/2)*8500 = $8,755
after 12 months: 8755 + (0.06/2)*8755 = $9.017.65
after 18 months: 9017.65 + (0.06/2)*9017.65 = $9,288.1795
the interest is $9,288.1795 - $8,500 = 788.1795.