Question

A savings account offers 0.7% interest compounded bimonthly. If $110 is deposited in this account, what will the balance be after 15 years?​

Answer 1

$111.15

Explanation:

Using the formula for calculating compound interest

A = P(1+r/n)^nt

A = 110(1+0.007/(1/24))^15(1/24)

A = 110(1+0.0168)^0.625

A = 110(1.0168)^0.625

A = 110(1.010)

A = 111.15

Hence the balance after 15 years is $111.15