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# 1000 is left in a bank account for five years. If it

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Intern
Joined: 23 Jul 2008
Posts: 7
1000 is left in a bank account for five years. If it [#permalink]

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23 Jul 2008, 07:43
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

1000 is left in a bank account for five years. If it receives a (nominal) annual interest rate of 4% a year compounded semi-annually, how much will be in the account at the end of five years?

Thanks again!!!
Manager
Joined: 14 Jun 2008
Posts: 162

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24 Jul 2008, 05:09
1000 * (1 + annual interest / compound frequency) ^ (number of intervals)

= 1000 * ( 1 + 4%/2) ^ 10

= 1000 * (1 + 2%)^10

= 1219
Manager
Joined: 20 May 2008
Posts: 55

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24 Jul 2008, 06:25
Whats the quickest way of calculating (1 + 2%)^10 ?
Senior Manager
Joined: 19 Mar 2008
Posts: 351

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24 Jul 2008, 06:45
wc2005 wrote:
1000 is left in a bank account for five years. If it receives a (nominal) annual interest rate of 4% a year compounded semi-annually, how much will be in the account at the end of five years?

Thanks again!!!

= 1000*(1 + 4%/2)^10
= 1000*(1.02)^10
Manager
Joined: 27 Jun 2008
Posts: 155

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25 Jul 2008, 22:35
Quote:
Whats the quickest way of calculating (1 + 2%)^10 ?

Re: Compounded interest   [#permalink] 25 Jul 2008, 22:35
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# 1000 is left in a bank account for five years. If it

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