business math word problem

redshadow

New member
Joined
Aug 23, 2011
Messages
2
wendy made deposits of $900 semiannually to Trust Bank which pays 6% interest compounded semiannually. After 7 yrs Wendy makes no more deposits. What would be the balance in the account 8 yrs later from the last deposit?

I started w/900 x 2 = 1,800 /yr but then became confused ..at 6% interest compounded semiannually would it be 1800 @12% a yr for 7 yrs.

Please can you help?
 
You went the wrong way. 6% annual interest ==> 3% compounded semiannually.
 
Last edited:
Top