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3 votes
What is this answer??

What is this answer??-example-1
User Catchwa
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1 Answer

4 votes
Here's the "compound amount" formula:

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

Mama52's comment, above, would be true EXCEPT that the base should be (1 + 0.038/2), which produces a different result:

Thus, the compound amount, with principal $4000, at 3.8%, compounded 2x per year, for 7 years, is

A = $4000 ( 1 + 0.038/2) ^ (7*2), or $5205.93 (answer)
User Gelatin
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