Tuesday, September 21, 2010

Compound interest compounding semi annualy?

Hi Could someone help me solving this problem , Matt has just won $100000 in the lottery and has decided to go into semi retirement . His wife told Matt that by investing his winnings in an account that pays 12% semi annually compounding interest , he can generate a regular income for the next 20 years . If matt invests the whole $100000 in this account how much will each payment be that he receives.