Question

$7000 is compounded semiannually at a rate of 12% for 22 years. What is the total amount in the compound interest account?

Answer 1

$25,480

Explanation:

12 must first be a decimal (12/100) which is 0.12

multiply 0.12 to 7000 and 22 to get 18,480

add 18,480 to 7000 to get $25,480

12/100=0.12

0.12*7000*22=18,480

18,480+7000=25,480