Suppose you put $100 into a savings account today, the account pays a simple annual interest rate of 6%, but compounded semiannually, and you withdraw $100 after 6 months. What would your ending balance be in 20 years after the initial $100 deposit was made?© BrainMass Inc. brainmass.com June 3, 2020, 9:06 pm ad1c9bdddf
Semi annual compounding implies that interest rate is 3% for each semi annual period. After the deposit is made, the interest ...
The solution explains how to determine the ending balance in the savings account.