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    Compound interest

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    I need help trying to figure out which formula to use to get $10,078.44

    Problem:

    Mr Jones wants to save for his son's college education. If he deposits $500 every 6 months at 6% compounded semiannually, how much will he have on hand at the end of 8 years?

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    Solution Preview

    There are 8*2=16 number of 6 months in 8 years. The money is compounded semiannually at the rate 6%.
    After first 6 months, Mr Jones deposits $500 ...

    Solution Summary

    This shows the future value of an account.

    $2.49

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