Interest in the account is compounded semiannually

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Reference no: EM131312372

You deposit ?$500 in a bank in a 9 ?-year time deposit. With a time deposit you cannot withdraw funds from the account until the end of the term. Interest in the account is compounded semiannually ?(m= 2?) at the annual nominal rate of 12%. In the final compounding? interval, what is the dollar amount of interest that is earned from earlier interest? (rather than off of the original? principal)? In the final compounding? interval, what is the dollar amount of interest that is earned from earlier? interest?

Reference no: EM131312372

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