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Suppose Constanza would like to accumulate $ 4 5 2 , 0 0 0 for a personal goal. To this end, Constanza plans to make
Suppose Constanza would like to accumulate $ for a personal goal. To this end, Constanza plans to make a periodic payment at the end of each sixmonth period for years into an account that earns interest, compounded semiannually.
Determine the periodic payment required, that Constanza needs to deposit at the end of each sixmonth period. Round the solution to the nearest cent, if necessary.
Periodic Payment $
Determine the total amount deposited by Constanza in this account over the years. Round the solution to the nearest cent, if necessary.
Total Deposits $
Determine the total amount of interest earned in this account over the years. Round the solution to the nearest cent, if necessary.
Total Interest $
Hint: Related Formulas
In the formulas below, A represents an account balance after years, where is the periodic payment made at the end of each compounding period, is the annual rate of interest in decimal form and is the number of compounding periods per year.
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