InterestForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › InterestThis topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts August 3, 2021 at 1:09 pm #630259 tomasmParticipantTopics: 11Replies: 6☆Hi TutorI watched your lecture but I have a doubt$1,000 is invested for three years at a 4% six monthly interest rate. At the end of the three years, what is the worth of the investmentI applied your method1000*(1.04)^2 = 1081.6APR = 8.16 % : Does this mean that after 3 years the value is 1081.6 or after 1 year the value is 1081. 6 ? August 3, 2021 at 6:59 pm #630299 John MoffatKeymasterTopics: 57Replies: 54628☆☆☆☆☆The figure you have arrived at is the amount after 1 year (you have taken it to the power of 2 and there are 2 periods of six months in a year,To get the amount after 3 years (which is 6 periods of six months) you need to do 1000*((1.04^6))The APR is indeed 8.16% but this is the annual rate and is not the interest for 3 years.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In