PROBLEM 7-1

Kornelius Kevin Iskandar (02211640000092)

Nathanael Bagas Waskito (02211640000122)
Aphrodita Luthfania Eka Putri (02211640000168)
Muhammad Rafi Ghifari (02211640000176)
Problem 7.1 :

What funds will be available 10 years

from now if $10,000 is deposited at
present at a nominal interest rate of 6
percent compounded semiannually?
Known :

■ Interest periods (N) = 10 years

■ Principal (P) = $10,000
■ Interest rate per period (r) = 6%
Asked :

Total amount of principal and accumulated

interest at 10 years (F) = ....?
Answer :

■  We know that :

■

r = 0,06
m = 2 (two times per year)
■ From equation 7.9, it is known that :

Thus, for r= 0,06 and m =2, then :

Answer :

■  The total amount due after 10 years at periodic interest rate of can be
■
obtained from equation 7.3 :
Conclusion :

The funds that will be available 10 years from now

with initial deposit of $10,000 is $18061,11.