The Mathematics of Finance - Pearson
ods for a deposit of $1000 at 2% interest compounded semiannually. SOLUTION Here, the initial balance is $1000 and i = 1% = .01. Let B 1 be the balance at the end of the first interest period and B 2 be the balance at the end of the second interest period. By formula (1), B 1 = (1 + .01)1000 = 1.01 # 1000 = 1010. Similarly, applying formula (1 ... ................
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