Question

When a principal amount, P, is invested at an annual interest rate,r, and compounded n times per

year, the amount accumulated in the account after t years can be found with the equation:
A = P(1+ :)"
Javier invested $2,350 in a savings account for 5 years with a rate of 1.75% compounded every six
months. In this situation, what is n?

Answer 1

Explanation:

10+50+60=500

Answer 2

2

Explanation:

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

P is the amount invested

r is the rate

n is the number of times per year the interest is compounded

t is the number of years

every 6 months is twice a year

so n is 2