2 A company deposits 2000 in a bank account every six months

2) A company deposits $2,000 in a bank account every six months for 10 years. The account earns 6% interest compounded annually. How much money will be in the account at the end of 10 years?

Solution

Semi Annual Deposits 2000 Rate of interest annual 6% Semi annual interest 3% Number of periods (semi annual) 20 Future Annuity factor for 20 period at 3% 26.8704 Future value of Semi annual deposits 53740.8 Answer is Amount in Account at the end of Year-10 is $ 53741