Question

Lance deposits $3,860 into an account that pays 3.08% interest, compounded semi-

monthly. What is his ending balance after 2 years? Round to the nearest cent.

Answer 1

The answer is A = 4105.09

Answer 2

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$3860\\ r=rate\to 3.08\%\to (3.08)/(100)\dotfill &0.0308\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semi-monthly, thus 24} \end{array}\dotfill &24\\ t=years\dotfill &2 \end{cases} \\\\\\ A = 3860\left(1+(0.0308)/(24)\right)^(24\cdot 2) \implies A = 4105.09`