An investor makes a 7 year deposit of $53,859. The bank is paying an interest rate of 10.28% per year, compounding half yearly.

Calculate "n" (number of periods).

Question

An investor makes a 7 year deposit of $53,859.  The bank is paying an interest rate of 10.28% per year, compounding half yearly.

Calculate "n" (number of periods).

BlackTom AI · Accepted Answer

To determine n, we need to relate the time horizon to the compounding frequency.
- The deposit is for 7 years, and interest compounds semiannually, which means 2 compounding periods per year.
- The number of compounding periods is therefore n = (years) × (periods per year) = 7 × 2 = 14.

Note that the actual interest rate per period or the future value would involve the per-period rate (10.28% / 2), but since the question asks for the number of periods, we only multiply the time span by the compounding frequency. The amount of the deposit does not change the count of periods, it only affects the accumulated value once n is known.

An investor makes a 7 year deposit of $53,859. The bank is paying an interest rate of 10.28% per year, compounding half yearly. Calculate "n" (number of periods).简答题

类似问题

Assuming monthly compounding frequency. How many periods ("n") are there in 19 years

Assuming monthly compounding frequency. How many periods ("n") are there in 22 years

Assuming half yearly compounding frequency. How many periods ("n") are there in 1 years

Assuming semi annual compounding frequency. How many periods ("n") are there in 10 years

Bob is looking to borrow for 11 years. The bank advised Bob that the current compounding frequency is half-yearly Calculate the number of time periods (n) of this borrowing

Assuming monthly compounding frequency. How many periods ("n") are there in 17 years

Assuming semi annual compounding frequency. How many periods ("n") are there in 7 years

Assuming monthly compounding frequency. How many periods ("n") are there in 24 years

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单