Question

How much will the account be worth in 46 months?

Answer 1

In the question we are given the following parameters

Principal = $5100

Rate = 16.87% compounded semi-annually

Time = 46 months = 3yrs 10 months = 3 5/6 years

Step-by-step explanation

We can solve the question using the formula below

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

"nt" is the number of months the principal accrues interest twice a year.

Therefore we have;

`\begin{gathered} A=5100(1+(16.87/100)/(2))^{(23)/(6)*2} \\ A=5100(1+0.08435)^{(23)/(3)} \\ A=5100(1.08435)^{(23)/(3)} \\ A=9488.62 \end{gathered}`

Answer:$9488.62