Question

Geoff has deposited $669 in a savings account that earns interest at a rate of 2.6% compounded twice a year. What will the account balance be in 12 years?

Answer 1

the account balance be in 12 years is $912.12

Explanation:

Geoff has deposited $669 in a savings account that earns interest at a rate of 2.6% compounded twice a year.

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

A is the balance amount

P is the Initial amount = 669

R= rate of interest 2.6%= 0.026

n is the number of times compounded=2

t is the number of years= 12

Plug in all the values and find out A

`A=669(1+(0.026)/(2) )^(2 \cdot\ 12)`

`A=669(1+0.013)^(24)`

A= 912.12

the account balance be in 12 years is $912.12

Answer 2

total = 669*(1+0.026/2)^2*12

total = 669* (1.013)^24

total = 669 * 1.363410671

total = $912.12