MBF3C - Algonquin Achievement Centre
The annual interest rate is 5% = 0.05. The semi-annual interest rate is the annual rate. i = = 0.025. Interest is compounded 2 times a year for 6 years. n = 2 x 6 = 12. i = n = 52 x 10 = 520. i = n = 4 x 7.5 = 30. Example 2: Jose invested $1250 at 5% compounded annually for 8 years. Determine the amount when the investment matures. ................
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