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Compounded Interest

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I'm stuck in figuring out the following problem.

Tracey deposits $5000 in a 5-year certificate of deposit paying 6% compounded interest semiannually. How much will Tracey have at the end of a 5-year period.

I think that the appropriate formula would be

FVn=PV(1+r/m)n*m

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Solution Summary

The expert examines five-year certificate of deposits for compounded interest.

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  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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