Question

Find the balance in the account. $1,400 principal earning 6%, compounded semi-annually, after 10 years

$2,507.19

$29,680.00

$2,528.56

$1,468,006,400.00

Answer 1

$2528.56

Explanation:

Answer 2

The balance in the account is $2528.56 after 10 years .

Explanation:

Formula

`Amount = P (1 +(r)/(2))^(2t)`

Where P is the principle , r is the rate of interest in the decimal form and t is the time in years .

As given

$1,400 principal earning 6%, compounded semi-annually, after 10 years .

P = $1400

6% is written in the decimal form

`= (6)/(100)`

= 0.06

r = 0.06

t = 10 years

Put all the values in the formula

`Amount = 1400(1 +(0.06)/(2))^(2* 10)`

`Amount = 1400(1 +0.03)^(20)`

`Amount = 1400(1.03)^(20)`

Amount = 1400 × 1.80611

Amount = $2528.56

Therefore the balance in the account is $2528.56 after 10 years .