73.7k views
4 votes
A $9070 investment earns interest at

3.3% per year compounded
semiannually over 17 years. Use the
compound interest formula to
calculate the value of this investment
to the nearest cent.

2 Answers

7 votes

Answer: $3660.96 or $3661.0

Explanation:

User Kdbdallas
by
7.6k points
4 votes

Answer:

The investment will be worth $16898.67 after 17 years, compounded semiannually at 3.3% per year.

Explanation:

The compound interest formula is:

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

where

A is the amount of the investment after t years,

P is the principal amount (9070),

r is the annual interest rate (3.3%),

n is the number of times the interest is compounded per year (2),

t is the number of years (17).

Using the formula:

A = 9070 * (1 + (0.033/2))^(2 * 17)

A = 9070 * (1.0165)^34

A = 9070 * 1.882611

A = 16898.67 to the nearest cent.

So the investment will be worth $16898.67 after 17 years, compounded semiannually at 3.3% per year.

User Neto Braghetto
by
7.1k points