A 5000 1 010 3. He invests 5000 into an account that pays 3 interest a year and is compound monthly. N 2 times 4 8.
This video contains plenty of.
Example 1 A deposit of 3000 earns 2 interest compounded semiannually. This is different from compound interest where interest is calculated on on the initial amount and on any interest earned. Use the continuous compound interest formula Given P 2340. Solution B P 1 r n P 3000 r 2 annual interest rate 2 interest periods 1 semiannual interest rate n number of payment periods number of interest periods times number of years.