### KEY CONCEPTS

3 i ≐ 0 003 333 3 In 6 years there are 6 12 or 72 compounding periods This means n = 72 Substitute the known values into the compound interest formula A = P(1 + i) n = 1000(1 + 0 003 333 3 ) 72 = 1000(1 003 333 3 ) 72 ≐ 1270 74 The amount after 6 years is $1270 74 The amounts for each compounding period are • semi-annually: $1268 24

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