Question

Compound amount

find the compound amount and the interest on 100,000 at 6% compounded semi-annually for

(a) 10 years

(b) 20 years

(c) 30 years

Answer 1

(a) $A=100000(1+\frac{0.06}{2})^{10*2}=180611.12.$

$I=180611.12-100000=80611.12.$

(b) $A=100000(1+\frac{0.06}{2})^{20*2}=326203.78.$

$I=326203.78-100000=226203.78.$

(c) $A=100000(1+\frac{0.06}{2})^{30*2}=589160.31.$

$I=589160.31-100000=489160.31.$