Thread: Annuity problem? Please Help!

Matthew deposits $150 each month in his account for 10 years. How much would he have after the 10 year period if the bank pays 6% p.a. interest compounded on a half yearly basis? (Sow all Working)

Heres what i got so far . . .

150 x { (1 + 0.03) to the power of 120 - 1 }
------------------------------------------ =
0.03
But i'm not sure if i get the right answer . . .
do i half the interest rate to 0.03?
and do I put 120 time periods for ( 10 years x 12 months) the amount of deposits or 20 time periods for (10 years x 2 = 20 half years) . . . ?

Thankyou if you help or for trying to help . . . i gtg to bed so yeah someone please be really smart on right now . . . .

Hello, lionking!

Matthew deposits $150 each month in his account for 10 years.
How much would he have after the 10-year period if the bank pays 6% p.a.
interest compounded on a half-yearly basis?

Don't let his monthly deposits confuse you.

Since the bank looks at his account every six months,
. . it is as if he deposits: semi-annually.

The periodic interest rate is:
. .and there are: periods.

The final amount is: .