Johnmuema544idn
Answered

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Assume that  KSh 350000  is deposited in an account in which interest is compounded semiannually at a rate of  6% per annum. Find the accumulated amount after 2.5 years​

Sagot :

Parrainidn

Based on the amount deposited and the interest rate, the accumulated amount after 2.5 years is KSh 405,745.92.

Period of Compounding

First find the period of compounding:

= Number of years x Period of compounding

= 2.5 x 2 a year

= 5 semi annual periods

Periodic interest

Interest is:

= 6% / 2

= 3% per semi annum

Amount accumulated

= Amount deposited x ( 1 + rate) ^ number of years

= 350,000 x ( 1 + 3%) ⁵

= KSh 405,745.93

In conclusion, amount accumulated is KSh 405,745.92.

Find out more about future value compounding at https://brainly.com/question/25805668.

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