I deposit $4,000 in a 5 year certificate of deposit paying 12%
compounded semi-annually. How much will I have at the end of the 5
year period?

Howdy meanie222-ga,

Here is the formula from the GoMath web site that will provide your answer.
http://www.gomath.com/Questions/question.php?question=37611

Principal: P = $4000
Annual interest rate: r = 12% = .12
Number of times the interest is compounded per year: n = 2
Number of years: t = 5
Maturity value: A = ?

A = P*[1+(r/n)]^(n*t)
A = 4000*[1+(.12/2)]^(2*5)
A = 4000*[1+(.06)]^10
A = 4000*(1.06^10)
A = 4000*1.79084769654285362176
A = 7163.39078617141448704

Rounded, you end up with $7163.39 at the end of 5 years.

If you need any clarification, feel free to ask, and thanks for using Google
Answers.


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Much thanks for the 5 star rating, meanie222-ga.

Looking Forward, denco-ga - Google Answers Researcher