Question

Calculate the compound amount. Use the compound amount formula and a calculator. (Round your answer to two decimal places.) P = $1100, r = 9% compounded semiannually, t = 14 years

Answer 1

The compound amount is $303.03 .

Step-by-step explanation:

Formula for compound interest:

`A=P* (1+(R)/(n))^(tn))`

Principle amount = $1100

Rate of the interest compounded semiannually :

= R = 9% = 0.09

Number of times interest compounded, n =
`(12)/(6)=2`

(semi means two times in a year)

Time period = T = 14

`A=\$1100* (1+(0.09)/(2))^(2* 14)=\$303.0310\approx \$303.03`

The compound amount is $303.03 .