Question

Today is your 20th birthday and your bank account balance is $25,000. your account is earning 6.5% interest compounded semiannually. how much will be in the account on your 50th birthday?

Answer 1

P = (1+R/n)^T*n
[P = principle, R = annual rate, n = number of periods per year & t = the number of years.]

25,000 (1+.065/2)^30*2
15,000 * 1.0325^60
15,000 * 4.24942 = $163,823
ANSWER FOR THE AMOUNT OF THE INVESTMENT AT AGE 50.