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Homework answers / question archive / if $3000 is deposited at the end of each half year in an account that earns 64% compounded semiannually, after how many half years will the account contain $140,000 (Round your answer UP to the nearest half year) half years
if $3000 is deposited at the end of each half year in an account that earns 64% compounded semiannually, after how many half years will the account contain $140,000 (Round your answer UP to the nearest half year) half years
Here, C = $3,000
Semiannual rate = 6.4%/2 = 3.2%
time t = ?
Future Value F = $140,000
F = (C/r)*((1+r)^t-1)
140000 = (3000/3.2%)*(1.032^t-1)
1.032^t-1 = 1.4933
1.032^t = 2.4933
t = log(1.032)(2.4933)
= 29.0
hence it will take 29 half years to make $140,000
