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What is the balance on a deposit of $818.00

earning 5% interest compounded semiannually for 5 years?

User Ralokt
by
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1 Answer

5 votes

Answer: $1,054.36

Explanation :

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

Where:

A = the balance after 5 years

P = the principal amount (initial deposit) = $818.00

r = the annual interest rate (as a decimal) = 0.05

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

t = the number of years = 5

Plugging in the values, we get:

A = $818.00(1 + 0.05/2)^(2*5)

A = $1,054.36

User Alec Matusis
by
8.0k points