Compounding and geometric sequences
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Compounding and geometric sequences

[From: ] [author: ] [Date: 11-09-09] [Hit: ]
024.43,P = 100,i = 0.A = 100000 * (1 + 0.A = 100000 * (1 + 0.......
I'm having a great deal of trouble with this problem:

What will an investment of $100,000 amount to after 5 years if it earns 8% interest compounded twice annually?

Could someone please walk me through the steps of this problem?
The answer is $148,024.43, I just don't know how to get there

-
A = P * (1 + i/n)^(n * t)

P = 100,000
i = 0.08
n = 2
t = 5

A = 100000 * (1 + 0.08 / 2)^(2 * 5)
A = 100000 * (1 + 0.04)^10
A = 100000 * (1.04)^10
A = 100000 * 1.48024428491834392576
A = 148024.428491834392576
A = 148024.43
1
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